a) Wheat is traded on which exchange(s), and what is the size of the unit of trading?

What is the margin requirement (or “performance bond”)? What are the spot price and the futures prices of contacts for one month, three months, and six months?

b) After a week has elapsed repeat Question (a). What are the price changes in the underlying commodity and the contracts? If you had taken a long position in each contract, what are the percentage changes in the spot price, the contracts, and the return on your margin?

c) Stock index options based on the S&P 500 are traded on which exchange? What are the spot and futures prices for one month, three months, and six months?

Based on the unit of trading, what are the values of the contracts?

d) After one week has elapsed, what are the spot and futures prices of the contracts in Question (c)? Was the percentage change in the prices greater for the spot price or the contracts?

To help you answer these questions, consult the following sites:

Kansas City Board of Trade, www.kcbt.com Chicago Mercantile Exchange, www.cmegroup.com