QUESTION 1 Suppose you purchase four September 2020 cotton futures contracts on this day, at a price of $6.724 per bushel. The contract size of the futures is 20 bushel What will your profit or loss be if corn prices turn out to be $5.969 per bushel at expiration? 60.4 -60.4 30.2 -120.8 -3.02 QUESTION 2 A textile company needs 170000 bushels of cotton in September 2020 for the upcoming season. The company would like to lock in its costs. The cotton futures price for September delivery is $6.192 per bushel today. How the company can hedge its position? (Purchase or sell) What total cost would you effectively be locking in based on the closing price of the day? Purchase: 1052640 Purchase; 170000 Purchase:-170000 Sell: 1052640 Sell: -1052640 QUESTION 3 Suppose you sell four August 2020 gold futures contracts one week ago, at a price of $1746 per ounce. The contract size of the futures is 100 ounce. If the spot gold price is $1547 and the gold futures price is $1516 today, what is your total profit or loss from this futures contract? -92000 184000 79600 -79600 92000 QUESTION 4 The standard deviations and betas of four shares are as follows: Share Beta Standard Deviation (%) w 1.4 23 X 19 Y 1.0 19 IZ 1.4 21 Which stock should have the highest expected return? Z 1.0 Y We don't have enough information to answer the