Homework Answers
1. As 1 futures contract of 5000 bushels was bought and a paper loss of $500 was incurred, it means that the loss per bushel was $500/5000 bushel = $ 0.1 per bushel
Hence, the price must have fallen and would have settled at $ 4.04 (purchase price per bushel) less loss ($0.1 per bushel)
So, the settlement price on the day was $4.04- $0.1 = $3.94 per bushel
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3. Do you think the Volkswagen’s decision to revert back to
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