Question

How can a seller offset a short position in a December futures contract on corn?

  1. How can a seller offset a short position in a December futures contract on corn?
0 0
Add a comment Improve this question Transcribed image text
Answer #1

It can actually be mentioned that short position is one which would actually restrict from offsetting where offsetting in a future contract is only possible in the long run.

Add a comment
Know the answer?
Add Answer to:
How can a seller offset a short position in a December futures contract on corn?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • In June, you enter a long September corn futures contract. It is now August, and you...

    In June, you enter a long September corn futures contract. It is now August, and you want to offset your contract. To do this, you would Aenter a long December futures contract on corn. Benter a short June futures contract on corn. Center a long August futures contract on corn. D.enter a short September futures contract on corn. E,enter a long June futures contract on corn. F.enter a short December futures contract on corn. Genter a short August futures contract...

  • The futures price of corn is $3.10 a bushel. Futures contracts for corn are based on...

    The futures price of corn is $3.10 a bushel. Futures contracts for corn are based on 9,000 bushels, and the margin requirement is $2,000 a contract. You expect the price of corn to fall and sell the contract short. What is the value of the contract and how much must you initially remit? Round your answers to the nearest dollar. Value of the contract: $ _______ Remit amount: $ _________ If the futures price of corn rises to $3.19, what...

  • JUULS what to facilitate trading in futures contracts? wall sellers and a seller to all buyers....

    JUULS what to facilitate trading in futures contracts? wall sellers and a seller to all buyers. Hubduces buyers and sellers to each other. c. It sets the price of the futures contracts. d. It determines the basis. (12) If the current cash price for corn is $3.40 and the curren carrying charge market. What do you expect to happen to th 40 and the current December futures price is $3.60, so the market is w you expect to happen to...

  • Explain the difference between a put option and a short position in a futures contract

    Explain the difference between a put option and a short position in a futures contract

  • You have no open silver futures position. The December Comex silver futures contract is now at $4.40/oz. You believe it...

    You have no open silver futures position. The December Comex silver futures contract is now at $4.40/oz. You believe it will be in a downward trend if it hits $4.20/oz. What order would you place with your broker now? a. Buy stop $4.20 b. Short stop $4.30 c. Short limit $4.40 d. Short stop $4.20 e. Short limit $4.20

  • 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...

  • Problem 2.2. A company has a short position in futures contract to sell 5,000 bushels of...

    Problem 2.2. A company has a short position in futures contract to sell 5,000 bushels of wheat. The company had entered into the contract when the futures price was 225 cents per bushel. The initial margin is $3,000 and the maintenance margin is $2,000. The current futures price is 250 cents per bushel and the margin account balance is $3,250. (a) Determine the net margin deposits to or margin withdrawals from the margin account so far. (6) What price change...

  • Use the following corn futures quotes:     Corn 5,000 bushels   Contract Month Open High Low Settle Chg...

    Use the following corn futures quotes:     Corn 5,000 bushels   Contract Month Open High Low Settle Chg Open Int   Mar 455.125 457.000 451.750 452.000 −2.750 597,913     May 467.000 468.000 463.000 463.250 −2.750 137,547     July 477.000 477.500 472.500 473.000 −2.000 153,164     Sep 475.000 475.500 471.750 472.250 −2.000 29,258       Suppose you buy 22 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 463.25, and you close out...

  • Use the following corn futures quotes: Contract Month Mar May July Sep Corn 5,000 bushels Open...

    Use the following corn futures quotes: Contract Month Mar May July Sep Corn 5,000 bushels Open High Low Settle 455.125 457.000 451.750 452.000 467.000 468.000 463.000 463.250 477.000 477.500 472.500 473.000 475.000 475.500 471.750 472.250 Chg Open Int -2.750 597,913 -2.750 137,547 -2.000 153, 164 -2.000 29,258 Suppose you buy 19 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 462.625, and you close out...

  • Use the following corn futures quotes:              Corn 5,000 bushels   Contract Month Open High Low Settle...

    Use the following corn futures quotes:              Corn 5,000 bushels   Contract Month Open High Low Settle Chg Open Int   Mar 455.125 457.000 451.750 452.000 −2.750 597,913     May 467.000 468.000 463.000 463.250 −2.750 137,547     July 477.000 477.500 472.500 473.000 −2.000 153,164     Sep 475.000 475.500 471.750 472.250 −2.000 29,258       Suppose you buy 35 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 465.375, and you close...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT