QUESTION 1

A trader sold short a cotton futures contract @ 50 cents per pound. Contract size is 50,000 pounds. How much does the trader gain or lose in DOLLARS if he closed out his contract when futures price is (a) 48.20 cents per pound.

QUESTION 2

A trader entered into a long S&P index futures contract when the futures price is 1010 and closed it out when the futures price is 902. What is his gain or loss in dollars? The contract multiplier is $250. Write your answer in the format as 10000 or -10000, no dollar sign, no comma.

QUESTION 3

A trader entered into 2 short British Pound futures contracts @ $1.5 per GBP, and closed out his position @ $1.7 per GBP. What is his gain or loss in USD? The size of the contract is 62,500 GBP. Write your answer in the format of 10000 or -10000, no comma, no dollar sign.

QUESTION 4

Suppose that you enter into a long contract to buy July silver for $5.2 per ounce on NYMEX. The size of the contract is 5000 ounces. The initial margin is $4000 per contract, and the maintenance margin is $3000 per contract. At what price are you going to receive a margin call? Please keep one decimal points and write your answer in dollars (e.g. 5.3). Please do not write dollar sign in your answer.

QUESTION 5

A company enters into a short futures contract to sell 5000 bushels of wheat for 450 cents per bushel. The initial margin is $3000 and the maintenance margin is $2000. At what price will you receive a margin call? Please write your answer in dollars and in the format as 5.2 (one decimal point, no dollar sign).

QUESTION 6

The forward price of the Swiss franc for delivery in 45 days is quoted as 1.25 CHF per USD. If you convert 1000 CHF into USD at this quote, how much USD will you get? Please write your answer in the format of 1100 or 700, leave the dollar sign out in your answer.