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?
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
A trader buys four September futures contracts on orange juice when the futures price is 160...
IFO Simulation Review By Duke @ Masterability Question 1 Part A: A trader buys two July futures contracts on frozen orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 160 cents per pound, the initial margin is $6,000 per contract, and the maintenance margin is $4,500 per contract. (a) What price change would lead to a margin call? (5 points) (b) Under what circumstances can $2,000 be withdrawn from the margin account? (5...
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Today you go long on 3 December contracts of lean hog futures, at a price of 59.6 cents per pound. One contract is for 40K pounds. One month later, December futures are trading at 44.9 cents per pound. If you close out your position at this time, what is your profit from this position?
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.
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