Please do everything asap. Thank you so much for being amazing. As per my guidelines do not touch unless you will finish everything

Part 1a.

Select the correct statement of the futures contract based on the Bloomberg screen below:

The contract size is 50,000 pounds and the minimum price fluctuation per contract is $500.

The buyer needs to pay $62,475 in May 2019 when they buy this contract.

The price of this commodity is $12.5 per pound.

This futures contract will be delivered in May 2020.

Part 1b.

A power producing company wants to purchase a natural gas futures contract. It will use the natural gas to generate electricity. The companys underlying position in natural gas is ______, so its futures position should be ______.

short, short

long, short

short, long

long, long

Part 2a

Whats the expected futures price for gold based on the information below?

• Spot price: $1,500 per troy ounce
• Secured storage cost: $250 per troy ounce
• Insurance cost: $300 per troy ounce
• Convenience benefit: $400 per troy ounce

$1,850 per troy ounce

$1,650 per troy ounce

$1,950 per troy ounce

$1,450 per troy ounce

Part 2b

Which of the following is NOT an option for the commodity buyer near the end of a futures contract?

Rolling over the contract to another future-dated futures contract

Preparing to accept physical delivery

Choosing not to exercise the contract

Preparing to exchange gains or losses in case

Part 3

A gold mining company purchased an option to sell gold at $1,685 per troy ounce in 6 months. The company paid a premium of $91 per troy ounce. The spot price on the expiration date is $1,750 per troy ounce. Which of the following is correct?

The gold mining company will exercise the option.

The gold mining company can get their premium back if the option is not exercised.

The gold mining company has bought a call option.

The gold mining company has bought a put option.

Part 3b.

A gold mining company purchased an option to sell gold at $1,685 per troy ounce in 6 months. The company paid a premium of $91 per troy ounce. The spot price on the expiration date is $1,750 per troy ounce. Which of the following is correct?

The gold mining company will exercise the option.

The gold mining company can get their premium back if the option is not exercised.

The gold mining company has bought a call option.

The gold mining company has bought a put option.

Part 4

Based on the Bloomberg screen blow, which of the descriptions is NOT correct?

In May 2020, if the spot price is higher than the strike price, the buyer does not need to pay the premium.

In May 2020, if the spot price is lower than the strike price, the seller will make a profit equal to the option premium.

In May 2020, if the spot price is lower than the strike price, the buyer wont exercise the option.

The strike price of this option is $0.5993 per gallon, and the contract size is 42,000 gallons.

Part 4b

A gold mining company purchased an option to sell gold at $1,685 per troy ounce in 6 months. The company paid a premium of $91 per troy ounce. The spot price on the expiration date is $1,750 per troy ounce. Which of the following is correct?

The gold mining company will exercise the option.

The gold mining company can get their premium back if the option is not exercised.

The gold mining company has bought a call option.

The gold mining company has bought a put option.

Please do all parts. Thank you