Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following corn futures quotes: Corn 5 , 0 0 0 bushels Contract Month Open High Low Settle Change Open Interest March 4 5

Use the following corn futures quotes:
Corn 5,000 bushels
Contract Month Open High Low Settle Change Open Interest
March 455.125457.000451.750452.0002.750597,913
May 467.000468.000463.000463.2502.750137,547
July 477.000477.500472.500473.0002.000153,164
September 475.000475.500471.750472.2502.00029,258
Suppose you buy 32 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 464.750, and you close out your position. Calculate your dollar profit on this investment.
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Performance

Authors: Marc Bertoneche, Rory Knight

1st Edition

0750640111, 978-0750640114

More Books

Students also viewed these Finance questions