2. Consider the futures listing for corn below: a. Suppose you buy one contract

Question

2. Consider the futures listing for corn below:
a. Suppose you buy one contract for December 2019 delivery. If the contract closes in December at a price of $3.65 per bushel, what will be your profit or loss? (Each contract calls for delivery of 5,000 bushels.)
b. How many December 2019 maturity contracts are outstanding?
MONTH: Dec ‘19 LAST: 376’.4 CHG: -1’6 OPEN: 375’0 HIGH: 390’4 Low : 374’2 Volume: 5670 OPEN INT: 134965      
2. Consider the futures listing for corn below:
a. Suppose you buy one contract for December 2019 delivery. If the contract closes in December at a price of $3.65 per bushel, what will be your profit or loss? (Each contract calls for delivery of 5,000 bushels.)
b. How many December 2019 maturity contracts are outstanding?
MONTH: Dec ‘19 LAST: 376’.4 CHG: -1’6 OPEN: 375’0 HIGH: 390’4 Low : 374’2 Volume: 5670 OPEN INT: 134965      
2. Consider the futures listing for corn below:
a. Suppose you buy one contract for December 2019 delivery. If the contract closes in December at a price of $3.65 per bushel, what will be your profit or loss? (Each contract calls for delivery of 5,000 bushels.)
b. How many December 2019 maturity contracts are outstanding?
MONTH: Dec ‘19 LAST: 376’.4 CHG: -1’6 OPEN: 375’0 HIGH: 390’4 Low : 374’2 Volume: 5670 OPEN INT: 134965      

Explanation / Answer

1.
Profit=contract size*(closing price-purchase price)=(3.764-3.65)*5000=570
2.
134965 contracts outstanding

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