Please identify and describe a futures contract that trades on the CME Group. In your opinion, will a long position or s...
Please identify and describe a futures contract that trades on the CME Group. In your opinion, will a long position or short position in the futures contract be profitable over the next month? Please justify your view.
Homework Answers
The product that is defined is the NYMEX WTI Light sweet crude oil futures.
This price is closely related to the international crude price and in turn dependent on macro economic conditions and.political situation. With the relatively stable macro economic conditions and political instability also not being there and the crude having reduced by 5% recently in the international market. And so the expectation is that crude price would rise slightly in the next month
So to gain from an increase in price, it would be prudent to go long the futures.
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Please identify and describe a futures contract that trades on the CME Group. In your opinion, will a long position or s...
Assume that an investor has a long position in standard CME EUR futures contract (EUR 125,000)...
Assume that an investor has a long position in standard CME EUR futures contract (EUR 125,000) and that today’s settlement price is $1.1678 per euro. If the balance in the investor’s performance bond account is currently $2,500 and according to his/her broker’s margin rules new money must be deposited if the balance falls to $1,900, at what EUR futures settlement prices would his/her broker demand additional money be deposited?
Assume today’s settlement price on a CME EUR futures contract is $1.3240/EUR. You have a long...
Assume today’s settlement price on a CME EUR futures contract is $1.3240/EUR. You have a long position in one contract. 1.)How do you Calculate the initial performance bond account balance? 2.)Assume that the next three days’ settlement prices are $1.3226, 1.3233, and 1.3249. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day.
Please show work 1) A trader entered into a long S&P index futures contract when the...
Please show work 1) A trader entered into a long S&P index futures contract when the futures price is 3,112 and closed it out when the futures price is 3,075. What is his gain or loss in dollars? The contract multiplier is $250. Write your answer in the format as 10000 or -10000, no dollar sign, no comma. 2) A trader entered into 2 short British Pound futures contracts @ $1.6 per GBP, and closed out his position @ $1.71...
25 25 en vertroue On day 1 the settlement price on a Chicago Mercantile Exchange (CME) yen futures contract is $0.8011/...
25 25 en vertroue On day 1 the settlement price on a Chicago Mercantile Exchange (CME) yen futures contract is $0.8011/X100. An investor has a short position in one futures contract for 12,500,000. The balance in the Investor's margin is $2,000. On day 2 the settlement price is $0.8057/100. On day 3 the settlement price is $0.7996/¥100. On day 4 the settlement price is $0.7985/100. The investor's margin account is marked to market on a dally basis. What is the...
Micro E-mini S&P 500 Futures contract
You have \(\$ 100,000\) to invest today. You are bullish about the stock market and you think that the S\&P 500 index is going up. You want to leverage your investment by taking a long position in S\&P 500 index futures.Micro E-mini S\&P 500 Futures contractThere is a new futures contract on the S\&P 500 index with a lower contract multiplier-only 5 times the index. You are using this contract to implement your strategy. You chose the contract expiring on...
15.8. Bob takes a long position in one contract of S&P 500 futures. Each contract is...
15.8. Bob takes a long position in one contract of S&P 500 futures. Each contract is for the delivery of 250 units of the index at a price of 1800 per unit. The initial margin is 10% of the notional value and the maintenance margin is 80% of the initial margin. Interest on the margin account is paid at an annual continuously compounded rate of 5%. The first mark-to-market occurs one week (7 days) after the sale of the contract....
3a. Fill in the table below for a long position in S&P 500 futures contract with...
3a. Fill in the table below for a long position in S&P 500 futures contract with 250 multiplier. Initial Margin is S 35000 10 points S&P 500 Future Price 2555 Investment Value Gain (+) Loss (-) Balance as Margin Time 2 2535 2575
1. Which of the following trades implies that ownership has been taken? a. Buying a futures...
1. Which of the following trades implies that ownership has been taken? a. Buying a futures contract. b. Selling a futures contract. c. Buying a stock. d. Shorting a stock. e. None of the above implies ownership. The following transactions are the only ones made during the first 4 days a futures contract trades. Answer question 2 based on this table. DAY TRANSACTION S O 1 A Long 30, B Short 30 2 A Long 55, C Short 55 3...
On 1 January you sold one March maturity S&P/ASX 200 index futures contract at a futures...
On 1 January you sold one March maturity S&P/ASX 200 index futures contract at a futures price of 700. If the futures price is 800 on 1 February, what is your profit? The contract multiplier is $25. In other words, the contract calls for delivery of $25 times the value of index. 1 index point move translates into a $25 change in the value of the contract. a. $100 b. -$100 c. $700 d. $2,500 e. -$2,500 Which one of...
a)Should a U.S. firm take a long or short position in British Pound futures if it...
a)Should a U.S. firm take a long or short position in British Pound futures if it wants to hedge against payables in British Pound? Explain you answer. b)Should a U.S. firm buy a call option or buy a put option on Japanese Yen if it wants to hedge against receivables in Japanese Yen? Explain your answer. c)What are the main differences between forward/futures vs. options as a hedging tool? d) Assume that the transactions listed in the first column of...
25 25 en vertroue On day 1 the settlement price on a Chicago Mercantile Exchange (CME) yen futures contract is $0.8011/X100. An investor has a short position in one futures contract for 12,500,000. The balance in the Investor's margin is $2,000. On day 2 the settlement price is $0.8057/100. On day 3 the settlement price is $0.7996/¥100. On day 4 the settlement price is $0.7985/100. The investor's margin account is marked to market on a dally basis. What is the...
15.8. Bob takes a long position in one contract of S&P 500 futures. Each contract is for the delivery of 250 units of the index at a price of 1800 per unit. The initial margin is 10% of the notional value and the maintenance margin is 80% of the initial margin. Interest on the margin account is paid at an annual continuously compounded rate of 5%. The first mark-to-market occurs one week (7 days) after the sale of the contract....
3a. Fill in the table below for a long position in S&P 500 futures contract with 250 multiplier. Initial Margin is S 35000 10 points S&P 500 Future Price 2555 Investment Value Gain (+) Loss (-) Balance as Margin Time 2 2535 2575
1. Which of the following trades implies that ownership has been taken? a. Buying a futures contract. b. Selling a futures contract. c. Buying a stock. d. Shorting a stock. e. None of the above implies ownership. The following transactions are the only ones made during the first 4 days a futures contract trades. Answer question 2 based on this table. DAY TRANSACTION S O 1 A Long 30, B Short 30 2 A Long 55, C Short 55 3...
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