Contract Size: 5000 bushels per contract, priced in cents per bushel Assume you are speculating on 1 corn contract in each of these questions. 1. You are a farmer who would like to hedge his position using corn futures. Will you take a long or a short position? 2. If you take a long position in December 22 corn at the open price and close the position at the last price, is your dollar gain or loss be? 3. If you take a short position in March 23 corn at the high and out the position at the last, what is your dollar gain or loss? 4. What is the dollar change in the December 22 cour from the prior settle to the current last value? 5. If you had $4,000 in a margin account at the beginning of the day, what is in the account at the end of the day if you take a long position at the open and close at the low price? 6. If you had $4,000 in a margin account at the beginning of the day, what is in the account at the end of the day if you take a long position at the open and close at the low price? Contract Unit: $100,000, Priced in 32 nds 1. If you are a bank that is trying to protect your bond portfolio against the Fed's rate increases, would you take a long or a short position in T-bond futures? 2. If you took a long position at t March open and closed at the la what is your dollar gain or loss? 3. If you took a short position at the March contract high and closed at the low, what is your dollar gain or loss? 4. If you started with $2,500 initial margin, how much would be in your account at the end of the day, if you took a short position at the March high and closed at the low? Contract Size: 5000 bushels per contract, priced in cents per bushel Assume you are speculating on 1 corn contract in each of these questions. 1. You are a farmer who would like to hedge his position using corn futures. Will you take a long or a short position? 2. If you take a long position in December 22 corn at the open price and close the position at the last price, is your dollar gain or loss be? 3. If you take a short position in March 23 corn at the high and out the position at the last, what is your dollar gain or loss? 4. What is the dollar change in the December 22 cour from the prior settle to the current last value? 5. If you had $4,000 in a margin account at the beginning of the day, what is in the account at the end of the day if you take a long position at the open and close at the low price? 6. If you had $4,000 in a margin account at the beginning of the day, what is in the account at the end of the day if you take a long position at the open and close at the low price? Contract Unit: $100,000, Priced in 32 nds 1. If you are a bank that is trying to protect your bond portfolio against the Fed's rate increases, would you take a long or a short position in T-bond futures? 2. If you took a long position at t March open and closed at the la what is your dollar gain or loss? 3. If you took a short position at the March contract high and closed at the low, what is your dollar gain or loss? 4. If you started with $2,500 initial margin, how much would be in your account at the end of the day, if you took a short position at the March high and closed at the low
