Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Hillary considers herself a shrewd commodities investor. She bought a May cotton contract ( 50,000 pounds) at $0.6750 a pound, and tater sold it at

image text in transcribed
image text in transcribed
Hillary considers herself a shrewd commodities investor. She bought a May cotton contract ( 50,000 pounds) at $0.6750 a pound, and tater sold it at $0.7047 a pound. What were her profit and her return on invested caphal if her initial margin was $1,370 and the size of a cotton futures contract is 50,000 pounds of cotton? Hillary's profit is $ (Round to the nearest dollar.) If she had an initial margin of $1,370, the return on finvested capital is (Round to two decimal places.) Hillary considers herself a shrewd commodities investor, She bought a May cotton contract (50,000 pounds) at $0.6759 a pound, and later sold it at $0.7647 a pound. What were her profit and her return on investod capitat if her initiat margin was $1,370 and the slze of a cotton futures contract is 50,000 pounds of colton? Hillary's profit is : (Round to the nearest dotlar.) If she had an initail margin of $1,370, the return on invested capital is 00%. (Round to two decimal places.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Management For Decision Making

Authors: Harold Jr. Bierman, Seymour Smidt

1st Edition

1587982129, 9781587982125

More Books

Students also viewed these Finance questions