Question
A. It's now Nov.1 (refer to data table) . You need to sell 600,000 Pounds in December. What is the amount that 600,000 Pounds sell
A. It's now Nov.1 (refer to data table). You need to sell 600,000 Pounds in December. What is the amount that 600,000 Pounds sell for at Nov.1 Spot price?
B. If you did not hedge, selling 600,000 Pounds on Dec. 5 would have what value $ at Dec.5 Spot price?
(B2). IF not hedging, the difference (indicate + or -) in the amount received from selling the 600,000 Pounds on Dec.5 compared to Nov.1 is___________?
C. HEDGING On Nov.1 assume you sold Dec. futures at $1.2258 / P. What is the value of the 600,000 Pounds at the Futures price on Nov.1?
D. It's now Dec. 5 (assume you sold Dec. futures at the $1.2258 / P price on Nov.1) You close your 600,000 Pounds futures position on Dec. 5 at the futures price of $1.2727 / P. What is the Futures value of the 600,000 Pounds at Dec. 5 Futures price.
(D2). What is the difference? Enter the $ amount of the Futures position GAIN (+$) or LOSS (-$). ____________ difference.
(D3). NET $ effect on Dec.5 with Futures hedge started on Nov.1? Enter the combined net amount from answers to #1 and #2
This is a multi-step one question problem, based on the data above. Thumbs UP to anyone who can help me finish it!
BRITISH POUND -DEC-2016 FUTURES Spot Futures Date Rate PRICE Brit Pound DEC Futures $1.275 $1.265 $1.255 $1.245 $1.235 1-Nov 1.2244 3-Nov 1.2463 7-Nov 1.2406 10-Nov 1.2554 14-Nov 1.2492 15-Nov 1.2454 17-Nov 1.2418 18-Nov 1.2346 21-Nov 1.2493 28-Nov 1.2418 30-Nov 1.2506 1-Dec 1.2591 5-Dec 1.2731 1.2467 1.2449 1.2573 1.2491 1.2477 1.2421 1.237 1.2489 1.2418 1.251 1.2585 1.2727 $1.225 $1.215 21-Oct 28-Oct 4-Nov 11-Nov 18-Nov 25-Nov 2-Dec 9-Dec -Spot Rate - Futures PRICE BRITISH POUND -DEC-2016 FUTURES Spot Futures Date Rate PRICE Brit Pound DEC Futures $1.275 $1.265 $1.255 $1.245 $1.235 1-Nov 1.2244 3-Nov 1.2463 7-Nov 1.2406 10-Nov 1.2554 14-Nov 1.2492 15-Nov 1.2454 17-Nov 1.2418 18-Nov 1.2346 21-Nov 1.2493 28-Nov 1.2418 30-Nov 1.2506 1-Dec 1.2591 5-Dec 1.2731 1.2467 1.2449 1.2573 1.2491 1.2477 1.2421 1.237 1.2489 1.2418 1.251 1.2585 1.2727 $1.225 $1.215 21-Oct 28-Oct 4-Nov 11-Nov 18-Nov 25-Nov 2-Dec 9-Dec -Spot Rate - Futures PRICE
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Eco Management And Audit Scheme
Authors: Gerardus Blokdyk
3rd Edition
0655169709, 978-0655169703
