Question
QUESTION 19 You believe crude oil price are going to increase and long 1 contract of oil today which is January (the oil contract size
QUESTION 19
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You believe crude oil price are going to increase and long 1 contract of oil today which is January (the oil contract size is 1,000 barrels per contract). The current oil future price for delivery in March is $59.48 per barrel. If crude oil is selling for $62.48 at the contract maturity date, whats your profits/losses?
A. $5,000
B. $3,000
C. $2,000
D. $4,000
Suppose the initial margin requirement for the oil contract is 40%. Contract size is 1000 barrels. Current future price for March is $30. The spot oil price at maturity date is 36. If you only invest on oil commodity and dont use future contract, whats your return if you buy the oil? The leverage ratio from using oil futures is_________.
| A. | 50%, 2.0
| |
| B. | 20%, 3.0
| |
| C. | 10%, 4.0
| |
| D. | 20%, 2.5
|
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College Accounting A Contemporary Approach
Authors: David Haddock, John Price, Michael Farina
3rd edition
978-0077639730
