A hedger takes a short position in five t-bill future contracts at the price of 99yy....
A hedger takes a short position in five t-bill future contracts at the price of 99yy. Each contract is for $100,000 principal. When the position is closed, the price is 98 5/32. What is the gain or loss on this transaction?
Homework Answers
Solution:-
The net gain on one bill is = 1000(98 5/32 - 95 12/32)
= 1000 * 2.78125
= $2781.25
The net gain on 5 bills is 5 * $2781.25 = $13,906.25
Add Answer to:
A hedger takes a short position in five t-bill future contracts
at the price of 99yy....
Each contract is or 5100 000 A hedger takes a short position in 5 T bill...
Each contract is or 5100 000 A hedger takes a short position in 5 T bill futures contracts at the price of 97 12/32 5/32 rinc a·Whe e sitions cosed th ice s The hedger incurs a gain of -(Round your response to the nearest cent)
2. A trader takes a long position and a hedge fund takes a short position on...
2. A trader takes a long position and a hedge fund takes a short position on ten S&P 500 futures contracts at 3300. A single S&P 500 futures contract invoice price equals ($50) x (Index Price). The initial margin is $12,500 and the maintenance margin is $9,500 per contract. Ten trading days later, the futures price of the index drops to 3150. a) What is the change in margin account balance 1) for the trader, and 2) for the hedge...
7. (5 points) Suppose you short 2 futures contracts of SwF 125,000 at a price of...
7. (5 points) Suppose you short 2 futures contracts of SwF 125,000 at a price of $1.05/SwF. Three months later you close out the position by buying a contract at a price of $1.0122/SwF. If you pay a round trip commission charge of $70 each, what is your profit or loss on the contracts?
On Oct 5, 2011, you sold 10 Eurodollar futures contracts for Dec 2013 delivery at 98.995....
On Oct 5, 2011, you sold 10 Eurodollar futures contracts for Dec 2013 delivery at 98.995. You closed your position by buying 10 ED contracts at 99.015 on Jan 13, 2012. What is your gain or loss? One ED futures contract has a notional principal of $1 million with a 90-day maturity based on 30/360 day count method. F(Oct 5, 2011)= 98.995 F(Jan 13,2012)= 99.015 No of contracts = 10 Change in price quoted $ amount gain (loss)
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...
3. Assume the commodity whi contract. As sec contract) are 90, 9. You initiated a short...
3. Assume the commodity whi contract. As sec contract) are 90, 9. You initiated a short futures position at a price of 100 before leaving for school. Now you must be at school to take this exam so you can not monitor the progress of your position. What order could you place with your broker just before taking this exam to unwind your position if prices moved 10 points in your favor? a. Buy limit 90 b. Buy stop 90...
Problem-01a: Current crude oil price is $52.00 per barrel. You sell (short position) 5, five, crude...
Problem-01a: Current crude oil price is $52.00 per barrel. You sell (short position) 5, five, crude oil futures contracts at futures price of $54.00 per barrel with maturity of one month. (Size of the contract is 5) Note that the size of one futures contract is 1,000 barrels. What is your profit if the crude oil price is $57.00 at maturity and assume cash settlement for this problem? ii. What is your profit if the crude oil price is $49.00...
Louis deposits $80,000 of margin and takes a short position in 80 corn futures contracts, covering...
Louis deposits $80,000 of margin and takes a short position in 80 corn futures contracts, covering 5000 bushels each, on Monday. Louis' trade price and the closing futures price on Monday are both $3.9050 per bushel. The initial and maintenance margins are $1000 and $800, respectively, per contract. The daily interest rate is 1.1 basis points per day on Monday and Tuesday and 1.2 bp per day on Wednesday. There are no transaction costs. On Tuesday, Wednesday and Thursday, the...
Use the following information for questions 27 – 29. Bill is a corn farmer in the Texas Panhandle. He has a 10 year average corn production of 25,000 bushels on his farm. At no time in the past 5 year...
Use the following information for questions 27 – 29. Bill is a corn farmer in the Texas Panhandle. He has a 10 year average corn production of 25,000 bushels on his farm. At no time in the past 5 years has that production dropped below 15,000 bushels. On March 5, Bill notices the December CBOT corn futures are trading at $4.178 per bushel. This is a much higher price than Bill has seen in the past and he wants to...
1. What would happen if your long (or short) futures contracts weren’t closed out automatically for...
1. What would happen if your long (or short) futures contracts weren’t closed out automatically for you at the end of the month (at the delivery date)? 2. What is the profit (or loss) generated on a position that is long 5 contracts @ $80.00, when the price of crude falls to $75.00? 3. If there was an increase of 5 million barrels of crude in storage for a particular week, why is the price reaction different given an expectation...
Each contract is or 5100 000 A hedger takes a short position in 5 T bill futures contracts at the price of 97 12/32 5/32 rinc a·Whe e sitions cosed th ice s The hedger incurs a gain of -(Round your response to the nearest cent)
2. A trader takes a long position and a hedge fund takes a short position on ten S&P 500 futures contracts at 3300. A single S&P 500 futures contract invoice price equals ($50) x (Index Price). The initial margin is $12,500 and the maintenance margin is $9,500 per contract. Ten trading days later, the futures price of the index drops to 3150. a) What is the change in margin account balance 1) for the trader, and 2) for the hedge...
7. (5 points) Suppose you short 2 futures contracts of SwF 125,000 at a price of $1.05/SwF. Three months later you close out the position by buying a contract at a price of $1.0122/SwF. If you pay a round trip commission charge of $70 each, what is your profit or loss on the contracts?
3. Assume the commodity whi contract. As sec contract) are 90, 9. You initiated a short futures position at a price of 100 before leaving for school. Now you must be at school to take this exam so you can not monitor the progress of your position. What order could you place with your broker just before taking this exam to unwind your position if prices moved 10 points in your favor? a. Buy limit 90 b. Buy stop 90...
Most questions answered within 3 hours.
-
An electron is trapped in a one-dimensional infinite well of
width 370 pm and is in...
asked 7 minutes ago -
Family Supermarkets has decided to increase the size of its
Lansing store. It wants information about...
asked 11 minutes ago -
A company produces and sells two products. Data concerning those
products for the most recent month...
asked 13 minutes ago -
When the epiglottis doesn’t move correctly, it can lead to
choking.
constipation.
heartburn.
vomiting.
asked 14 minutes ago -
With the rise of social media and digital platforms, some say
"Print is dead". So, what...
asked 23 minutes ago -
Python Code Question# 1
General Instructions
Create a class called LawnService that takes in the length...
asked 28 minutes ago -
Use the work-energy theorem to find the force required to
accelerate an electron (m=9.11 * 10^-31...
asked 29 minutes ago -
A person throws a 1 kg ball at a wall with a speed of 30.0 m/s....
asked 46 minutes ago -
Given an n-element unsorted array A of n integers and an integer
k, describe and implement...
asked 45 minutes ago -
Using Classes/Objects
Part-1
Create 3 frame/label objects
Place 2 objects side-by-side on top of the screen...
asked 47 minutes ago -
The maximum speed of the pendulum bob in a grandfather clock is
0.60 m/s .
1.If...
asked 53 minutes ago -
Consider the market for education. The marginal social cost of
education (MSC) and the private benefit...
asked 56 minutes ago