.Gold futures contracts are based on 100 troy ounces and are priced in dollars per troy ounce. At the end of trading today, you saw a market report on the November contracts with these prices: Open 1293.00, High 1295.00, Low 286.00, and Settle1296.10. If you own two of these contracts, what is the value of your position as of the end of the trading day?

A.$129,610

B.$259,000

C.$258,600

D.$259,220

E.$260,4607.

Ethanol futures contracts are based on 29,000 gallons and are priced in dollars per gallon. Assume the end-of-day prices on a contract are: Open 2.220, High 2.231, Low 2.181, and Settle 2.186. What is the maximum profit that an investor could have earned by buying and selling one of these contracts on this day?

A.$1,131

B.$1,450

C.$942

D.$2,436

E.$986

Company A can borrow money at a fixed rate of 7.5 percent or a variable rate set at prime plus 1 percent.

Company B can borrow money at a variable rate of prime plus +.5 percent or a fixed rate of 8 percent.

Company A prefers a variable rate and company B prefers a fixed rate. Which one of the following statements depicts the most favorable outcome of a swap between Companies A and B?

A.Company A could pay a fixed rate of 7.25 percent.

B.Company A could pay a fixed rate of 7.75 percent.

C.Company B could pay a fixed rate of 8 percent.

D.Company B could pay the variable prime rate + 1 percent.

E.Company A could pay the variable prime rate + .75 percent.

Gold futures contracts are based on 100 troy ounces and are priced in dollars per troy ounce. At the end of

trading today, you saw a market report on the November contracts with t

hese prices: Open 1293.00, High

1295.00, Low 286.00, and Settle1296.10. If you own two of these contracts, what is the value of your position

as of the end of the trading day?

A.$129,610

B.$259,000

C.$258,600

D.$259,220

E.$260,460

Ethanol futures contracts are based on 29,000 gallons and are priced in dollars per gallon. Assume the end-of- day prices on a contract are: Open 2.220, High 2.231, Low 2.181,and Settle 2.186. What is the maximum profitthat an investor could have earned by buying and selling one of these contracts on this day?

A.$1,131

B.$1,450

C.$942

D.$2,436

E.$986

You decided to speculate in the market and sold six platinum futures

contracts when the futures price was $1,391.20 per troy ounce. The price on the contract maturity date was $1,395. The contract size is 50 troy

ounces. What was your total profit or loss on the settlement day if you had to cover your position in the spot market?

A.$190 profit

B.$1,140 profit

C.$190 loss

D.$50 profit

E.$1,140 loss

9.

You expect to deliver 45,000 bushels of wheat to the market in July. Assume you hedged your position by

selling futures contracts on half of your expected delivery at a price of 713.5. The futures contracts are based on

5,000 bushels and are priced in cents per bushel. Assume the market price turns out to be 714 when you actually

deliver the wheat. How much more or less would you have earned if you had not bought the futures contracts?

A.$80 less

B.$112.50 less

C.Neither more nor less

D.$112.50 more

E.$80 more

Suppose a financial manager buys call options on 45,000 barrels of oil with an exercise price of $31 per barrel.

She simultaneously sells a put option on 45,000 barrels of oil with the same exercise price of $31 per barrel. Her net profit per barrel is _____ if the price per barrel is $29 and _____ if the price per barrel is $35.

A.-$4; $2

B.-$2; $0

C.$0;-$2

D.$0; $2

E.-$2; $4