Suppose today is February 10, 2017, and your firm produces breakfast cereal and needs 170,000 bushels of corn in May 2017 for an upcoming promotion. You would like to lock in your costs today because you are concerned that corn prices might rise between now and May. Use Table 23.1 a. What total cost would you effectively be locking in based on the closing price of the day? (Round your answer to the nearest whole number, e.g., 32.) b. Suppose corn prices are $3.58 per bushel in May. What is the profit or loss on your futures position? (Enter your answer as a positive number. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) a. Total cost TABLE 23.1 Sample Wall Street Journal Futures Price Quotations Chg Open interest -0.0125 -0.0130 6 72 120,434 -2.50 -2.70 -2.70 -2.80 -2.70 -2.50 1,387 288,888 63,531 18,296 29,516 4,419 Metal & Petroleum Futures Contract Open High hilo Low Settle Copper-High (CMX)-25,000 lbs; $ per lb. Feb 2.6735 2.6735 2.6715 2.6480 March 2.6660 2.6765 2.6410 2.6535 Gold (CMX)-100 troy oz; $ per troy oz. Feb 1239.40 1243-50 1226.90 1235.10 April 1242.70 1246.20 1226.10 1236.80 June 1246.10 1249.00 1230.00 1240.00 Aug 1250.10 1252.00 1235.10 1243.10 Dec 1254.00 1256.90 1239.00 1249.20 June'18 1266.00 1266.00 1254.80 1259.00 Palladium (NYM)-50 troy oz; $ per troy oz. Feb 732.85 732.85 732.85 772.60 March 770.60 778.80 768.00 772.55 June 771.00 780.00 770.40 774.00 Sept 7 75-30 777.00 775.10 775.00 Platinum (NYM)-50 troy oz; $ per troy oz Feb 978.80 979.10 978.80 1019.20 April 1019.60 1032.10 1016.20 1022.20 Silver (CMX)-5,000 troy oz.; $ per troy oz. Feb 17.750 17.815 A 17.750 17.720 March 17.780 17.845 17.615 17.741 Crude Oil, Light Sweet (NYM)-1,000 bbls; $ per bbl. March 52.37 53.21 52.37 53.00 April 52.98 53.70 52.95 53-46 53.42 54.10 53.41 53.88 June 53.90 54-45 53.90 54.25 2.80 2.80 2.85 22,948 6,503 17 2.80 2.80 42 59,479 0.037 0.036 179 113,427 0.66 0.55 0.51 0.49 385,634 280,780 192,554 264,679 May 0.49 0.37 229,809 111,505 .0055 .0059 111,133 7 2,273 Dec 54.79 55-35 54.79 55.21 Dec'18 55.10 5 5-50 55.04 55-32 NY Harbor ULSD (NYM)-42,000 gal; $ per gal. March 1.6360 1.6624 1.63451.6415 April 1.6443 1.6693 1.6435 1.6500 Gasoline-NY RBOB (NYM)-42,000 gal; $ per gal. March 1.5510 1.5811 1.5471 1.5702 April 1.7600 1.7800 1.7575 1.7741 Natural Gas (NYM)-10,000 MMBtu; $ per MMBtu. March 3.143 3.189 3.110 3.141 April 3.212 3.253 3.179 3.209 May 3.269 3-311 3.240 3.272 June 3-339 3-365 3.298 3-330 July 3-385 3-413 3-350 3-380 Oct 3-385 3-423 3-358 3-392 .0175 .0122 112,099 85,512 .015 197,215 .013146,224 .017 137,143 .019 7 9,485 .020 79,570 .020 93,442 -1.25 -1.25 500,405 346,739 50 3.00 4,155 3,027 Agriculture Futures Corn (CBT)-5,000 bu; cents per bu. March 369.50 372.75 367-50 369.50 May 377.25 380.25 A 375.25 377.25 Oats (CBT)-5,000 bu; cents per bu. March 256.00 257.50 250.00 254-50 May 248.25 254.00 246.00 253.00 Soybeans (CBT)-5,000 bu; cents per bu. March 1057.00 1061.50 1045.00 1050.50 May 1067.25 1071.50 1055-50 1061.50 Soybean Meal (CBT)-100 tons; $ per ton. March 340.70 341.60 335-90 338.40 May 344.80 345.80 340.10 342.60 Soybean Oil (CBT)-60,000 lbs, cents per lb. March 34.67 34.98 34-47 3 4.67 May 34.96 35- 26 3 4-76 34.95 -8.25 -7.75 248,998 210,368 -2.80 -2.70 126,399 122,484 -02 -.03 123.991 118,319 -8.00 -8.50 9.388 2,516 11.00 11.75 179,982 137.497 9.25 8.50 71,740 69.377 11.00 9.25 24.788 29.537 1.325 1.075 19,575 10,511 875 .075 17,410 144.593 875 --950 14,671 104,603 Rough Rice (CBT)-2.000 cwt; $ per cwt. March 953.00 960-50 942.00 9 47-50 May 978.50 984-50 968.00 972.50 Wheat (CBT)-5,000 bu., cents per bu. March 430-50 444.00 429-50 443-50 May 442.00 455-50 440.75 455-25 Wheat (KC)-5,000 bu; cents per bu. March 440-25451-75 438.25 451.25 July 465-25 475-25 462.75 475.00 Wheat (MPLS)-5.000 bu, cents per bu. March 557-50 569.50 556.00 568.50 May 556.75 567.00 555-50 566.50 Cattle-Feeder (CME)-50,000 lbs., cents per lb. March 122.525 123.800 121.900 123.625 April 123.250 124.200 122.450 124.050 Cattle-Live (CME)-40,000 lbs, cents per lb. Feb 117.250 117.750 116.775 117.650 April 115.000 115.175 114.125 114.825 Hogs-Lean (CME)-40,000 lbs, cents per lb. Feb 73-900 74.500 73-550 74.225 April 72.125 72.250 70.625 70.775 Lumber (CME)-110.000 bd. ft., $ per 1,000 bd. ft. March 381.70 381.70 373.80 375-40 May 379.60 381.70 375-90 378.40 Milk (CME)-200,000 lbs.; cents per lb. Feb 16.87 16.89 16.79 16.85 March 16.91 17.03 16.73 16.97 Cocoa (ICE-US)-10 metric tons; $ per ton. March 1,993 2,018 1.969 1,974 May 2,008 2,038 1,988 1,996 Coffee (ICE-US)-37.500 lbs; cents per lb. March 143-40 145.70 142.85 145.20 May 145.95 148.05 145-25 147.60 Sugar-World (ICE-US)-112,000 lbs, cents per lb. March 20.74 21.03 20.62 20.65 May 20.72 20.97 20.61 2 0.65 Sugar Domestic (ICE-US)-112,000 lbs, cents per lb. May 30.40 30.40 30.40 30-32 July 30.40 30.40 30.39 30.40 Cotton (ICE-US)-50,000 lbs, cents per lb. March 75.43 76.13 75-25 75-58 May 76.40 77.30 76.40 76.65 Orange Juice (ICE-US)-15,000 lbs, cents per lb. March 172.65 175.00 171.55 174.00 May 167.80 169.75 166.80 168.75 3.50 .60 2,698 1.541 2 - .03 4.180 4.392 -1935.455 -15 105,293 2.30 2.30 43.558 73.254 -.11 -08 220,619 224.526 .07 946 1,768 33 104.332 2 297.772 1.00 .60 7,438 3.434 -1-030 -1-030 622,929 2,310 -14.0 -14.5 3,169,794 68,648 Interest Rate Futures Treasury Bonds (CBT)-$100,000; pts 32nds of 100% March 153-160 153-170 151-310 152-060 June 152-060 152-060 150-240 150-300 Treasury Notes (CBT)-$100,000; pts 32nds of 100% March 125-155 125-155 124-270 124-295 June 124-265 124-270 124-105 124-120 5 Yr. Treasury Notes (CBT)-$100,000; pts 32nds of 100% March 118-132 118-132 118-012 118-025 June 118-015 118-015 1 17-230 117-235 2 Yr. Treasury Notes (CBT)-$200,000; pts 32nds of 100% March 108-170 108-172 108-142 108-147 June 108-060 108-060 1 08-060 108-055 30 Day Federal Funds (CBT)-$5,000,000; 100-daily avg. Feb 99-343 99-345 99.343 99-342 April 99-315 99-320 A 99-305 99-310 10 Yr. Del. Int. Rate Swaps (CBT)-$100,000; pts 32nds of 100% -8.5 -9.0 3,119,541 137,090 -2.0 -2.5 1.349,070 8.979 -001 -.005 100,104 373,852 --438 31.717 4.896 -.0025 -.0100 -.0200 -0300 83.716 1,455,611 1,434,355 1,350,776 -.0097191,960 -.0096 9,846 .0011 115.305 .00112,625 March 94.703 94.766 94-35994.438 1 Month Libor (CME)-$3,000,000; pts of 100% Feb - 99.2275 Eurodollar (CME)-$1,000,000; pts of 100% Feb 98.9650 98.9650 98.9625 98.9625 March 98.9450 98.9450 98.9300 98.9350 June 98.8000 98.8000 98.7750 98.7800 Dec 98.5400 98.5450 98.5000 98.5050 Currency Futures Japanese Yen (CME)- 12,500,000; $ per 100X March 8948 8949 .8829 .8834 June 89828986 .8868 8872 Canadian Dollar (CME)-CAD 100.000; $ per CAD March 7610 7639 -7596 .7614 June 7619 .7646 -7604 .7622 British Pound (CME)-62,500; $ per March 1.2544 1.2589 1.2497 1.2502 June 1.2563 1.2616 1.25271.2531 Swiss Franc (CME)-CHF 125,000; $ per CHF March 1.0066 1.0079 -9995 .9999 June 1.0100 1.0136 1.0055 1.0058 Australian Dollar (CME)-AUD 100,000; $ per AUD March -7636 -7659 -7605 .7622 June -7617 7641 -7589 .7605 Sept 7576 -7611 -7576 7593 Mexican Peso (CME)-MXN 500,000; $ per MXN March 04861 .04904 .04847 .04879 June 04791 .04837 .04782 .04811 Euro (CME)-C125,000; $ per March 1.0706 1.0721 1.0662 1.0670 June 1.0746 1.0770 1.0712 1.0720 -.0031208,495 -.0032 1,661 -.0064 -.0064 47,842 180 -.0004 -.0004 -.0004 115.779 1,205 688 .00018 .00018 142,828 47.992 -.0029 -.0029 391,573 10,473 126,519 893 68,270 1,259 2,882,114 36,548 Index Futures Mini DJ Industrial Average (CBT)-$5 x index March 20010 2 0158 A 19982 20136 134 June 1992120093 1 992120073136 S&P 500 Index (CME)-$250 x index March 2290.70 2307-50 A 2288.302304-30 14.10 June 2295-50 2302.90 2295-50 2299.10 14.20 Mini S&P 500 (CME)-$50 x index March 2290.50 2307-75 A 2287-752304.25 14.00 June 2285.00 2302.75 2282.50 2299.00 14.00 Mini S&P Midcap 400 (CME)-$100 x index 1691.70 1709.70 16.30 Mini Nasdaq 100 (CME)-$20 x index March 5189.8 5219.3 A 5186.3 5212.3 21.0 June 5193- 3 5217.8 5186.0 5211.3 21. 0 Mini Russell 2000 (ICE-US)-$100 x index March 1356.50 1380.10 1354.60 1377.00 21.00 June 1357-30 1375-70 1357-30 1374-30 21.00 Mini Russell 1000 (ICE-US)-$100 x index March 275.10 1282.10 1274.60 1280.60 8.50 U.S. Dollar Index (ICE-US)-$1,000 x index March 100.24 100.67 100.08 100.65 3 8 June 100.22 100.58 100.05 100.56 36 94.526 233,819 6 21 613,166 540 7,872 69,426 2.792 Sources: SEX Financial Information: The Wall Street Journal, February 10, 2017