Answered

Discover a world of knowledge at Westonci.ca, where experts and enthusiasts come together to answer your questions. Get immediate and reliable solutions to your questions from a community of experienced professionals on our platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Suppose you buy 30 of the September corn futures contracts at the last price of the day. One month from now, the futures price of this contract is 464.5, and you close out your position. Calculate your dollar profit on this investment

Sagot :

buchinnamani208

Full question attached

Answer and Explanation:

If you buy 30 of the September corn futures contract at the closing price of 472.00(refer to the chart in picture attached)

Your total buying value = 30×472.250=14167.5

Since one month from now the corn futures contract is 464.5

Total value of your corn futures now= 30×464.5= 13935

Profit/loss=13935-14167.5= -232.5

Therefore you make a loss of $232.5

View image buchinnamani208
We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thanks for using our platform. We aim to provide accurate and up-to-date answers to all your queries. Come back soon. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.