A trader buys four September futures contracts on orange juice when the futures price is 160...
A trader buys four September futures contracts on orange juice when the futures price is 160 cents per lb. of orange juice Each contract is for the delivery of 15,000 lbs of the orange juice. How much does the trader lose or gain if the orange juice price at the end of the contract is 145 cents per pound?
Homework Answers
Answer:
Future contract price Fp=160 cents/lbs
Number of Contract N=4
Quantity in each contract L=15000 lbs
Price at end of contract P=145cents/lbs
Since price at end of contract is less than purchase price of contract so trader will have losses and lose amount =(160-145)*4*15000=$9000
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A trader buys four September futures contracts on orange juice
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Table 23.1:
Sample Wall Street Journal Futures Price Quotations TABLE 23.1 Metal &Petroleum Futures Contract Op en...
Please, show clear work if you need thumbs up, be sure the answer is right, if...
Please, show clear work if you need thumbs up, be sure the
answer is right, if the answer is incorrect you will get thumbs
down.
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Suppose you purchase a May 2017 coffee futures contract on this
day at the last price of the day. Use Table 23.1
What will your profit or loss be if coffee prices turn out to be
$1.4567 per pound at expiration? (Do not round intermediate
calculations. Enter your answer as a positive value and round your
answer to 2 decimal places, e.g., 32.16.)
Table 23.1:
Sample Wall Street Journal Futures Price Quotations TABLE 23.1 Metal &Petroleum Futures Contract Op en...
Please, show clear work if you need thumbs up, be sure the
answer is right, if the answer is incorrect you will get thumbs
down.
1. One orange juice futures contract is on 15,000 pounds of frozen concentrate. Suppose that in September 2016 a company sells a March 2018 orange juice futures contract for 125 cents per pound. In December 2016, the futures price is 140 cents, in December 2017, it is 115 cents; and in February 2018, it is...
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