Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please help with the following Suppose you sell six August 2020 gold futures contracts this day at the last price of the day. Use Table
Please help with the following
Suppose you sell six August 2020 gold futures contracts this day at the last price of the day. Use Table 23.1. a. What will your profit or loss be if gold prices turn out to be $1,757.20 per ounce at expiration? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) b. What will your profit or loss be if gold prices are $1,734.20 per ounce at expiration? (Do not round intermediate calculations and enter your answer as a positive value rounded to the nearest whole number, e.g., 32.) Suppose you purchase the July 2020 put option on corn futures with a strike price of $3.40. Assume your purchase was at the last price. Use Table 23.2 a. How much does your option cost per bushel of corn? (Round your answer to 5 decimal places, e.g., 32.16161.) b. What is the total cost for one contract? Assume each contract is for 5,000 bushels. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. Suppose the price of corn futures is $3.14 per bushel at expiration ofthe option contract. What is your net profit or loss from this position? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) d. What is your net profit or loss if corn futures prices are $343 per bushel at expiration? (Do not round intermediate calculations and enter your answer as a positive value rounded to 2 decimal places, e.g., 32.16.) 31.82 31.65 32.27 32.87 34.07 3730 2.40 28.13 15-99 11.86 3.25 3.00 a. Option cost b. Total cost per bushel TABLE 23.1 Sample Wall Street Journal Futures Price Quotations Metal & Petroleum Futures Open Copper-High (CMX) May July 2.3655 2.3375 Contract High hi Lo 25,000 lb; $ per lb 2.4260 2.4285 Gold (CMX)100 troy oz; $ per troy oz May June Aug Oct Dec Feb'21 1755-70 1757 50 1769-40 1780.00 1780.00 1765.00 1770.50 1775.80 1787-50 1792.90 1800.00 1775.00 A A A Low 2.3400 2.3340 1734.10 1729-30 1741.90 1750.50 1756.20 1762.00 Palladium (NYM) 50 troy oz; $ per troy oz May June Sept Dec 1873.10 1880.00 2000.00 20770.00 2050.00 2000.00 1863-70 1880.00 2000.00 Platinum (NYM)50 troy oz; $ per troy oz. May July 807.60 823.10 807.60 877.00 Silver (CMX)5,ooo troy oz.; $ per troy oz May July 17.220 17.225 17-585 17-985 805.10 822.70 17.220 17.125 Crude Oil, Light Sweet (NYM)1,ooo bbl; $ per bbl June July Aug Sept Dec Dec'21 29-53 29.81 3030 30.92 32.25 35-55 33-32 33.10 33-52 33-90 34-77 37.81 NY Harbor ULSD gal; 29-53 29-55 30.15 30.69 32.13 35-55 $ per gal June July .9205 .9585 1.0286 1.0586 Gasoline-NY RBOB gal; June July .9195 9556 $ per gal .9682 .9830 June July Sept Oct Jan'21 April 1.0588 1.0699 Natural Gas MMBtu; $ per MMBtu 1.851 2.020 2.163 2.244 3.033 2.566 .9700 .9882 1.725 1.903 2.062 2.145 2.965 2.527 1.702 1.878 2.047 2.138 2.964 2.523 Agriculture Futures Corn bu; July Dec 320.00 332.25 Oats bu; March May 313.00 270.00 cents per bu 322.00 334.00 cents per bu 323.00 273-75 Soybeans (CBT )5,000 bu; cents per bu July Nov 840.50 848.00 Soybean Meal (CBT) July Dec 287.80 293-50 847-75 855.00 100 tons; $ per ton 288.00 V 293.80 Soybean Oil (CBT) July Dec 26.61 27-43 Rough Rice (CBT) July May 16.06 11.91 60,000 lb; cents per lb 27-40 28.17 2,000 cwt; $ per cwt 16.38 11.95 318.00 330.75 309 50 267-50 838.75 845-75 284-50 291.80 26.61 27-38 493-75 497.00 Settle 2.4050 2.4040 1731.80 1734-40 1746.70 175360 1760.60 176360 2021 80 2027.10 2016.20 2009.20 864-70 869-30 17-464 17-468 1.0064 I 0379 1.0258 1.0426 1.783 1.959 2.110 2.198 2.993 2541 320.75 332.75 318.75 269-50 845.00 852.75 285.10 292.30 27-32 16.07 11.95 49700 500.00 Chg 0.0715 0.0735 21.60 21.90 -21.30 19.60 18.10 17-40 169.20 169.20 161.30 161.50 52.20 52.20 0.418 0.398 2.39 2.13 2.15 2.18 2.06 1.76 .0860 .0831 .0556 .0588 .137 .126 .110 .100 .038 .022 1.50 .75 6.75 -.75 6.50 7.25 .74 .76 .05 .04 Wheat (CBT )5,000 bu; cents per bu July Sept 501.50 504-50 502.75 505.25 cents per bu V Open Interest 1,672 99,558 1,335 257,707 165,420 18,096 63,563 10,863 3,381 3,318 393 8 42,602 353 111,605 54,931 308,131 248,058 304,304 339,481 129,484 52,223 70,002 45,072 92,197 101,895 311,801 133,670 102,926 94,105 69,921 603,507 346,236 2,732 1,132 319,483 173,440 174,198 74,397 177,486 87,635 6,877 4,385 198,564 76,746 Wheat bu;
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started