Problem 3-12 Futures Quotations (LO3, CFA4) Use the following corn futures quote

Question

Problem 3-12 Futures Quotations (LO3, CFA4) Use the following corn futures quotes: Corn 5,000 bushels Book rint rences Righ Low Settle Chg Open I Har May July Sep 455.125 457.000 451.750 452.000 -2-750 597,913 467.000 468.000463.000463.250-2.750 137,547 77,000 477 500 472.500 473.000-2.000 153,16 475.000 475.500 471.750 472.250 2,000 29,258 ignoring commission, what is your dollar profit on this transaction? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Dollar proft

Explanation / Answer

INITIAL VALUE OF POSITION = 16 X 5000 X (468/100) = 374400

FINAL VALUE OF POSITION = 16 X 5000 X (465.875/100)=372700

PROFIT = 374400 - 372700 =1700

DOLLAR PROFIT = 1700 (THUMB UP PLEASE)

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