Suppose that you entered into a cash-and-carry like arrangement where you agreed to sell 10 shares of Apple through a forward contract, where the forward price is the agreed upon price. To hedge the sale, you use the futures arrangement from the previous problem. What is your profit?

Info:

Futures Arrangment from previous problem: Settlement on this exchange occurs every six months. The futures price varies over that time: the prices are 170, 180 and 173, at months 6, 12 and 18, respectively (you should already know the price at 24 months).

Margin account requires 25%

One share costs 159 as of now

Divident rate is 2%

Risk free rate is 5%

You purchase a quantity of shares today that will grow to 10 shares in 2 years.

Agree to sell 10 shares of apple for $150/share in 2 years. You reciee $223.62 in the sale.

Price of one share in 2 years is $179.