| Suppose today is January 8, 2015, and your firm produces breakfast cereal and needs 160,000 bushels of corn in December 2015 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 December. Use Table 25.2 |
| a. | What is the total price you are locking in for the 160,000 bushels of corn based on the day's closing price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| b. | Suppose corn prices are $4.32 per pound in December. What is the profit or loss on your futures position? (Enter your answer as a positive value. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
Data on Futures Contracts wSJ.com/commodities Contracts, Thursday Metal &Petroleum Futures Coffee (ICE US) 37,500 s125 05 Published, The Wall Street Copper-High(CM2000pr 2.7910 2.7960 March 2.7600 27765 2.7480 2.7585 -0.0085 120,806 0 2,000 14.94 14,99 4.61 14.78-09 428531 497 1512 Sugar-Domestica usua000 lba; ents per b 152189 25.00 25.12 2493 84 60.43 23 119551 133 Feb 1219.00 1219.40 120910 1210.70 -.70 219,873 April 122020 122020 1209.80 121150 -8.70 75,780 June 121950 121950 1210.40 121200 .70 37,173 Aug 122000 1220.00 121450 121260 8.70 10,648 Dec 121700 121850 1214.00 1213.90 -8.70 22,01 miNY Gol 25.40 254025.0 25.38 60.40 60.9115 34 748 5,000bs,cnts per la 143.10 143.10 143.10 143.20 0 1209.25 1210.75 -8.75 502 45 364 April 121600 121675 121100 121150 -3.75 June 1218.25 1218.75 1211.00121200-875 March 142.10 143.70 14120 142.6035 8857 Interest Rate Futures 81890 818.90 81290 79245 7.95 na. March 148-160 148-240 147-100 148-0600 882093 June 80280 80280 787.75 793.20 785 Jan 122020 1222.70 121800 1220.70 0.10 Silver (C5,000troy :pr 881 Ju 165-120 165-170 13-290 16503050 1747 Notes tCDT d 160 128-220 005 128-150 3.5 2667.999 Apn 122350 1225.10 1214801220.90-0.565367 June 127-215 127-300 i27-120 127-295 4,0 3,229 Notes(CET) $100,000; Ptasandad 10% Notes (CBT) $200,000; pts S2nds et 100% 130 Day Federal Funds(CBT 5,000,000:100-dyarg. 91 March 119-240 119-282 119-175 119-255 3.2 1815,691 290 97, March 109-130 109 150 109-120 109-14S 15 1246072 4683 4865 0.72 279,774 May 99.945 99.855 '99840 99845 .005 98205 mINY Silver Merch 16.500 16.575 16.325 rude Oil Light Sweet ONMO-LO00 March 50 4450.71,50 38 16.544 -0093 48.0049.31 49.08 062 229 07510 Yr. Del. Int.Rate Swupsc $100,000 ladsops 4900 50434804 4972 056 79,097 March 108.078 108.203 107 Sept 53,0353.86 S211532 357.655 March 99827 99.8275 99 99 827 0025 256 Dec16 60.30 61.55 5982 6057-032 74,198 a 997525 99.7525 99.7475 9974750025 69733 Varch 99.7250 99.7300 997200 997250 0050 L106,176 June 99.5750995900 99.5600995800 .0150 1.077137 Dec 99.1400 99.1750 99.1100 9 1400 0150 1070443 1.7020 00,053 March 1.6784 16966 16486 1.6755 -.189 71,550 Gasoline-NYRBOBONYMO-4200D gal,$pergal March 13782 13970 13497 13766-0097 54,325 Natural Gas DNYINO-1D,.000MMEt Sper MBru April 333 Oct 3.003 3.071 2.933 2.964-042 52,003British Pound (CME 052.500$pe E March 442 8362 84120023 226,633 2796 2.835-040 107,228 Canadian Dollar (CNE)-CAD100,000Sper CAD 2.813 2.849-038 92.948 March .8434.8452 8408 .8447 .,0002 93.612 .8417.8432 8400 .8429-0002 7,743 June 15115 15143 Y 15050 15104-0039 Swiss Franc (CME)-CHF 125,000$per CHF 602 March 40475 407 25 39575 39625-8.75 622973 March .9901 9918 T 9839 ,9829 -osi 62828 427.75 43000 19.75 420.25 8.00 189,117 June 9920.9920 9865.9904-.0049 1.317 Australian Dollar (CME)AUD100.000 $per AUD 274 March .8037 .8051 , .7993 .8041 -.0026 121.806 1.505 1.505 1.502 1.507 01 229 June 988 7995 952 7992 -0025 March 304.00 30425 300.7530175 2.75 5.892 March .06691,06779 06676 .06768.00063 130,970 May 30.00 305.00 303.00 304.002.00 1324 June .06729 06729 06724 06728 0003 50 1052.75 1.75 7,538 March 11884 1.1904-1.1809 1.1857 -.0064 403,080 March 1054.25 1061.00 104825 105625 .50 292,948 June 1.1880 1.1933 1.1823 1.1869-.0064 3,168 524 March 7852 763 7324 785 0021 10B6 Euro/Japanes 370.90 372.10 365 30 36850 2.30 42 March 14082 14167 40.74 140.95 38 March 355.00 357.40 35110 35400 -1.10 179,677 Euro/British Pound CE-USES.000Eper 267 33.1532673298 29 888 Earo/Swiss Franc CICE-US)-C125,000-CHF pir March 32.35 33.50 3269 331 29 188,660 March 120041.2005 1.2001 1.2002 .0003 1141.00 1142.00 269 7,778 March 1159 50 1173.00 115850116500 4.50 Wheat (CE5000ba cestsper bu. March '-594.25 59450 -578.50 57950-12.25 201.155 Mini DJ Industrial Averagecomsalda July 600.00 601.25 8650 5875 -1100 65,421 March 17309 17524 Wheat OKC)5000 bu ceats per b 17300 17507 217 112371 7239 17444 May 635.75 637.75 62250 62350 -11.75 22,552 March 1997 10 202400 1995.80 201960 25.20 122,933 May 632.0063275 62000 62225-9.50 15.374 March 1996 50 2023.75 1995.75 2019-50 25.00 2,738,793 March 222.200 222.225 218.375 220.325 50 15,427 March 140790 142800 1407.90 142610 19.60 82531 S&P 500Indax (CME) $250 intea une 2003 10 2012.50 1998.20 201240 25.30 2776 Mini S&P S00(CE:Saida June 198950 201650 1989.50 20125 25.50 9.6 Wheat OMPLS) soc0bu cents per bu March 626.00 528.00 A' 61350 6575-975 36,416 Cattle-Feeder (CNEJ-S0,000 lbs.cents per b Jan225.800 226.275 223.075 225.650 7,732 Mini S&P Midcap 400 (CME-$100 ind Catle Live cer h Feb 166.400 166.750 16495 165.9002 111,136 Aor 165.450 155.450 103800164.725-275 85028 March 4108 50 4162504106.00 4151.50 4925 Hogs-Lean(CME) 40,000ca per b 6737 Mini Nasdaq 100 (CME)-S20xindes Fe' _79875.-78 79t25. N 85.568 March 41055 4163.3 y 4102.81151.5 493 335 une 4094.0 4152.0 4094.0 41408 493 Mini Russell 2000 aCE-US)-$100xindea 60,748 66 March 115880 117220 1158.40 1171.60 14.70 1160.00 116000 1160.00 1167.80 14.70 24.50 328.40 337,932 March 31750 32490 31670 322.70 5.30 3,512 June Milk(CNE 200,000s,cents per MiniRussen0000E-USJ-$100r inder 15.65 16.11 1558 1580 .15 5578 March 1117 20 1124.50-1114.70 1122.30 13.70 7,897 March 92.00 9251 91.90 92.12 .38 123,258 Source: Slx Finandal leformation 14.70 14.94 24 5383 U.S.Dollar Iadex (ICE-US)-S1000 xinden 2,883 2895
