A) Suppose you buy one contract for March Delivery. If the contract closes in March at a level of 787.25, what will your profit be?
B) How many March Maturity Contracts are outstanding
a). Corn futures list prices in cents per bushel. One contract is of 5,000 bushels.
Last price for March delivery = 783'2 cents (The number after apostrophe represents eighths of a cent) so converting it we get
783 cents + (2*1/8) cents = 783 + 0.25 = 783.25 cents or $7.8325
Closing price is 787.25 cents or $7.8725
Profit = 7.8725 - 7.8325 = 0.04 per bushel
Profit for one contract = profit per bushel*number of bushels = 0.04*5,000 = $200
b). Open interest gives the number of outstanding contracts for each maturity month. For March, it is 135,778.
A) Suppose you buy one contract for March Delivery. If the contract closes in March at...
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