Suppose you are a speculator and have previously taken a long position for April 2019 lean...
Suppose you are a speculator and have previously taken a long position for April 2019 lean hogs at a price of $74.635. The price of this contract is currently $73.425, and you decide to close your position. What do you do to close your position, and what is the change in the total value of your position?
Homework Answers
Add Answer to:
Suppose you are a speculator and have previously taken a long
position for April 2019 lean...
Suppose that you have taken a long position on a put option. The strike price is...
Suppose that you have taken a long position on a put option. The strike price is $125, and the option premium / price is $10. When the option expires, the value of the underlying asset is $90. What is your pay-off and profit / loss?
Suppose that you have taken a long position on a put option. The strike price is...
Suppose that you have taken a long position on a put option. The strike price is $125, and the option premium / price is $10. When the option expires, the value of the underlying asset is $90. What is your pay-off and profit / loss? please show your work
You have taken a long position in a call option on IBM common stock. The option...
You have taken a long position in a call option on IBM common stock. The option has an exercise price of $144 and IBM's stock currently trades at $148. The option premium is $6 per contract. a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit on the option if IBM’s stock price increases to $158 at expiration of the option and you exercise the option? c. What is...
You have taken a long position in a call option on IBM common stock. The option...
You have taken a long position in a call option on IBM common stock. The option has an exercise price of $147 and IBM's stock currently trades at $152. The option premium is $6 per contract. a. How much of the option premium is due to intrinsic value versus time value? Option Premium Intrinsic value $ Time value b. What is your net profit on the option if IBM’s stock price increases to $162 at expiration of the option and...
Today you go long on 3 December contracts of lean hog futures, at a price of...
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?
You have taken a long position in a call option on IBM common stock. The option...
You have taken a long position in a call option on IBM common stock. The option has an exercise price of $148 and IBM's stock currently trades at $153. The option premium is $7 per contract. a. How much of the option premium is due to intrinsic value versus time value? b. What is your net profit on the option if IBM’s stock price increases to $163 at expiration of the option and you exercise the option? c. What is...
Suppose that you have taken a short position on a call option. The strike price if...
Suppose that you have taken a short position on a call option. The strike price if $55, and the option premium / price is $5. When the option expires, the value of the underlying asset is $54. What is your pay-off and profit / loss?
Suppose that you are a speculator and that you noticed that the Japanese yen (¥) has...
Suppose that you are a speculator and that you noticed that the Japanese yen (¥) has depreciated substantially against the U.S. dollar (USD) over the past several months. The current spot rate $0.009546 (i.e. 0.009546 USD per ¥). Several major financial press articles suggest that the yen will continue to substantially depreciate over the next month. However, you expect the yen to substantially appreciate over the next month. Note that you do not currently have a position in yen; however,...
Suppose the future price is 1200 and you wish to acquire a $10 million position in...
Suppose the future price is 1200 and you wish to acquire a $10 million position in the S&P 500 index. a) Find the notional value of one contract (amount you are agreeing to pay at expiration per futures contract) b) Suppose you go long $10 million of the index: How many futures contracts would you enter? c) Suppose there is 20% margin, If the S&P 500 future drops by 10, how much do you lose on your futures position? d)...
Suppose that you SHORT FIVE May 2016 Gold futures contracts at the opening price of $1,119.40/oz on May 4, 2019. You close out your position on May 8, 2019 at a price of $1,110.50/oz. The initial mar...
Suppose that you SHORT FIVE May 2016 Gold futures contracts at the opening price of $1,119.40/oz on May 4, 2019. You close out your position on May 8, 2019 at a price of $1,110.50/oz. The initial margin and the maintenance margin requirements are $4,400 per contract and $4,000 per contract, respectively. Contract size is 100 troy ounces per contract. Assume that you deposit the initial margin in cash for the FIVE contracts sold and did not withdraw the excess on...
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?
Most questions answered within 3 hours.
-
Homework: Create a Class.... from scratch
Design , implement and test a class that can be...
asked 9 minutes ago -
A project has a service life of five years with the initial
investment outlay of $200,000....
asked 5 minutes ago -
Employee develop involves longer term training and opportunities
that while not immediately needed on a current...
asked 5 minutes ago -
Why is the reticulum the affected compartment of the
stomach?
Group of answer choices
It has...
asked 7 minutes ago -
(Print distinct numbers) C++
Write a program that reads in 10 numbers and displays distinct
numbers...
asked 8 minutes ago -
A 3.0275 g sample of KHP (a primary standard, 1:1 acid:base,
FM=204.23 g/mol) is titrated with...
asked 13 minutes ago -
1. You need to make an aqueous solution of
0.165 M barium acetate for an
experiment...
asked 13 minutes ago -
Let X be a discrete random variable with the following PMF.
Px(k) =
1/4 for k...
asked 17 minutes ago -
ONLY use the information provided here on the
firm's Mission Statement. Written assessment must include
(1)...
asked 27 minutes ago -
2 Aliases
2a: Create an alias, numberfiles, which prints the number of
files in the current...
asked 35 minutes ago -
Hi so I'm currently using MIT App Inventor to create a app and I
wanted to...
asked 31 minutes ago -
Create a truth table for a 4-bit input where the output will be
a 1, if...
asked 33 minutes ago