Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the following corn futures quotes: Corn 5,000 bushels Contract Month Open High Low Settle Chg Open Int Mar 455.125 457.000 451.750 452.000 2.750 597,913

Use the following corn futures quotes:

Corn 5,000 bushels
Contract Month Open High Low Settle Chg Open Int
Mar 455.125 457.000 451.750 452.000 2.750 597,913
May 467.000 468.000 463.000 463.250 2.750 137,547
July 477.000 477.500 472.500 473.000 2.000 153,164
Sep 475.000 475.500 471.750 472.250 2.000 29,258

Suppose you sell 25 of the May corn futures at the high price of the day. You close your position later when the price is 463.375. Ignoring commission, what is your dollar profit on this transaction? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Dollar profit $

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

Finance At 40 Financial Intelligence

Authors: MOIRA O'NEILL Moira O'Neill

1st Edition

1408101114, 978-1408101117

More Books

Students also viewed these Finance questions

Question

What is time-based competition?

Answered: 1 week ago

Question

4. Does cultural aptitude impact ones emotional intelligence?

Answered: 1 week ago