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Suppose that In the 5 days following a farmer's sale of December wheat futures at a futures price of $7.54, the futures price Is: At
Suppose that In the 5 days following a farmer's sale of December wheat futures at a futures price of $7.54, the futures price Is: At the end of day 5, the farmer decides to quit wheat farming and buys back his futures contract. (Hint: Contract size =6,800 bushels) 1. What payments are made between the farmer and the exchange on each day? (Leave no cells blank - be certaln to enter " 0 " wherever required. Negatlve amounts should be Indicated by a minus sign. Do not round Intermedlate calculations.) 2. What is the total payment over the 5 days? (Do not round Intermedlate calculations.) 3. Would the total payment be any different If the contract was not marked to market? Yes No
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