Look at the futures listings for the corn contract in Figure 2.11. Suppose you b
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Question
Look at the futures listings for the corn contract in Figure 2.11.
Suppose you buy one contract for July delivery. If the contract closes in July at a level of 777.45, what will your profit be? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your response.)
How many July maturity contracts are outstanding?
Look at the futures listings for the corn contract in Figure 2.11.
Month Sep 2012795'0 15'4780'0797'0763'483008 Dec 2012783'412'2772'4785'6 755'6179014 Mar 2013 783'211'4772'4784'4 757'224738 May 2013 779'611'2 769'2780'4755'0 Last ChgOpen HighLowVolume Open Int 369243 499807 135778 21882 57618 9120 54205 8119 Jul 2013 773'4 10'6 763'2 774'0 749'0 12310 Sep 2013 669'4-1'6 670'0673'0 660'0 Dec 2013 634 0-1'0 633'0 637'0625' 1833 4510 Figure 2.11 Corn futures prices in the Chicago Board of Trade, July 17, 2012 Source: The Wall Street Journal Online, July 17, 2012.Explanation / Answer
a). The JULY maturity futures price is 773.4 per bushel. If the contract closes at 777.45 per bushel in July, your profit/loss on each contract will be:
777.45 – 773.4 = 4.05 gain.
b). There are 12,310 contracts outstanding
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