|  Suppose today is May 1, 2014, and your firm produces breakfast cereal and needs 125,000 bushels of corn in July 2014 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 July. Use Table 23.1
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| 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 $5.08 per pound in July. 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.) |
| (Click to select)ProfitLoss | $ |
Futures Contracts WSJ.com/commodities Metal& Petroleun Futures Sugar-World CICE-US)-12000catspe th Copper-High(CHX)-25,000 be$per lb May 3.0780 30835 3.0210 3.0295 July 3.0740 309 3.0150 3.0275 00455 98,212 Sugar-DomesticICE-US) 112000b cants pee l 2450 24.85 30 3,182 June 1295.60 1298.40 128490 1295.90 040 218,906 Cotton (CE-US)-50,000cpr lh Aug 1295.50 129750 1285.10 1296.00 0 1769 May Oct 1293.00 129800 1286.00 1296.10 050 10,324 July Dec 1295.10 1297.70 1285.60 1296.20 -050 27,516 Dec'15 1296.40 129640 1296.40 1299.70 -0.20 10,641 940094.509331 42413 115 Aug 1291.00 129100 1291.00 1296.00 050 June 134-130 135-000 133-300 134-300 18.0 733,186 Sept 133-200 134-060 133-060 134-050 18.0 1,753 Notes (CBT)-$100,000:pts 3nds of 10O 124-145 123-260 124-135 13.5 2,516,039 July 1430.20 143120 1419.70 142790 350 60,875 Sept 123-025 123-170 122-315 123-170 140 12,048 June 119-060 119-150 119-027 119-145 9.7 2,078,501 Sept 118-100 118-202 118-090 118-200 10.2 18,585 2 Yr. Treasury Notes [CET) Saoa000, pts 2nd, an00% June 109-287 109-30 109-280 109-300 15 1,085,118 Sapt 109-200 109-202 109-182 109-202 2.0 2B,670 19485 19510 19.060 19.174-0364 100,283 mNY Silver (C01.15 0363 Crude Oil, Light Sweet (NYM)-L000 bbls: $per bbl 99.34 99.74 154 34154 30 Day Federal Funds (CBT) 5000,000:100-daily avg,. 700 97.313 107,875 10Yr. Int. Rate 4.9313 214924 June 101-060 101 88.03-089 Dec'158856 8857 1Month Liba(CME) $100,000:ptst00% May 99.8500 99.8500 998500 99.8500.0025 87.73 119,044 L074 521 May 2.9650 2.9661 2.9235 2.9349-.0352 4319 July 99,8475 99.8475 993450998450 .0025 -.035495,367 Eurodollar (CME) $1.00,000: tsaf100 May 99,7750 99.775 99.7750 99.7750 0025 30,857 Marchi5 99.6150 99.6350 99.6100 99.6300 .0150 1.051.313 June 99.4300 99.4600 99.4250 994550 0250 1,072,829 Dec 98.9200 98.9650 989000 9896000450 1.222978 June 29620 2.9620 2.9168 2.9281 Gasoline-NY RBOBNYN 42000gal-$per gal. 29918. 30077 -oss, June 30020 30055 2947 2.9644-0436 123,498 Natural GasNYM0,000MM$pr MMBtu Sept April 4272 4272 4217 4239 -015 51 Canadian Dollar (CME)-CAD)00000, Seer CA 4777 4.843-010 182,707 4.747 4.754 4.81807 120,745 June 48144.845 4.813.007 61579 Japanese Yen(CME)-V12,S00,000,$.pe 100 .9743 .9795 .0043 167,682 9947 0041 7,000 9097 9126 0009 115,458 May 515.00 51550 509.00 514.00-175 35,010 June 1.6820 1.689S AIS797 881.005623402 British Pound (CME-962 300 $pe Swiss Franc (CNEAF 125000 per CHF Australian Dollar (CMEAUDID0,00$p Corn(CBT S,000bu cents per bu July 520.75 52150 514.25 519.00 50 627,376 Sept .6803 1.6880 A 16792 16868 0055 1188 Ethanol (CBT)-23,000 gal:Spergal Oats (CBT) 5.000bu;ents per bu. July 36900 370.00 358.25 360.50 875 4,661 Sept May 1525.00 1532.00 1516.00 1530.75 675 16,868 June 294 June 11319 1.1385 11300 11369 0048 46,955 2181 2.186 03 1838 Spt 11326 11373 11326 11378 0048 ALD 9222 9267 0023 109.395 517 July 1517.25 1517.75 1502.25 1512.75450 313,722 Sept 0553 0755307553 07573 00017 May 5017050480 499.00 503.90 4,00 10,595 June Soybean Oil (CBT) 50,000be,oents per lb 900 13810 1387713768 13870 00 259,073 July 490.90 49430 489.20 493.70 250 169,405 Sept 1.3806 1.3874 1376813868.0061 1L787 42.79 42.0 1.69 41.8889 8,767 une 171 141.05 14109 141.602,926 8212.8241 .8198 17.0009 1,906 415 1.82 41-84 166719 Euro/British Pound 276 May 1555.50 1553.00 1552.50 1561.50 -100 July 155650 155950 1548.00 1555.50 150 5,605 June Wheat(CBT) S,000bu, cntsrbu May 706.25 71600 702.25 713.00 500 501 Index Futures July 715.00 724.75 710.75 721.50 50024,364 DJ Industrial Average(CBT) $IDx iadex Wheat(KC)-8000a:cants par bu. 1971.2204 1.2187 1.2200 .0002 May650, 8110079.50 809.75 1250 9DJIndustrial Average(CBTx Wheat(MPLS)-5,000bu;cents per bu 74650 75850 742.75 757.0095 1161 S&P500Index(CME) $290 xindex July760.00 77125 75625 76835 7.50 5,513 June 1870.40 1880.20 1866.50 1877.90 6.10 129.189 Cattle-Feeder (CME)-50,000bscnt per Ib. May 180.600 181425 179 - Sept 1865.40 1872.40 1860.40 1870.50 6.10 1.871 181.200 62 8,202 Mini S&P 500 (CME) $0xindex | Aug 186.800 187.900 186.250 187.475 925 23,690 June 1870.50 1880.25 186625187800 6252,835,160 Sept 1863 25 1872.75 1859.25 187050 600 14711 Cattle-Live 40 E14 0500 . 144570 (CME)-40,000sces per 145200 April 145.400 143.500 144.900 145.825 325 June 137.175 137.725 136.575 137.200 5 173,780 June 1344.70 1354.80 133780135310 7.90 87,449 Hogs-Lean (CME) 40,000 bs;cs per I. May 118.675 119.000 117.275 117.675 -2600 ,854 June 3555 50 3581.0000 57325 9.50 16.59 June 124.425 124500 122.500 123.12521509,408 Mini Nasdaq 100 173,780 P400 (CME-$000 xindex Nas Nasdaq 100 (CME) $100Inde Lumber (CMEOC00bd$per 1,000 bd. b June 35573 3578.0 3539.0 3573.3 95 348.588 295 336.70 339.00 334.80 335.90-140 104 Sept35493 3560534.8 3586.5 98 July 333.50 334.60 330.10 331.20 2.30 3126 Mini Russell 2000 (ICE-US)-S100x inde Milk(CME)-200,000 lbs, cants per Ib. April 24.27 24.32 ' 2427 2431 .01 5.011 Sept. 1143.00 1143,00 1135.00 1119.30 7.30 75 1070 107.0 22.01 22.55 07 5,060 Mini Russell 1000 CICE-US)-$100xindex Cocoa (ICE-US)-10metric tons $ pee ton June 1039.40 104870 U.S. Dollar Index (ICE-US)$L000xinde 34 Coffee ICE-US 37.S00 Ibs-cents per Ib. July 210.00 21120 22.00 205.85-605 8,56
