Question

Suppose you sell ten July 2014 silver futures contracts on this day, at the last price...

Suppose you sell ten July 2014 silver futures contracts on this day, at the last price of the day which is $19.174 per ounce. Each contract is for 5,000 ounces.

What will your cumulative mark to market be if silver prices are $19.22 per ounce at expiration? (Do not round intermediate calculations. Enter your answer as a positive value if a profit or as a negative number if a loss. Round to the nearest whole number, i.e. dollar, e.g., 32.)

Cumulative MTM = $______

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Suppose that you enter into a short futures contract to sell July silver for $29.80 per...
Suppose that you enter into a short futures contract to sell July silver for $29.80 per ounce. The size of the contract is 5000 ounces. The initial margin is $ 3500, and the maintenance margin is $2500. What change in the futures price will lead to a margin call? A trader buys two July futures contracts on orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 170 cents per pound, the initial margin...
Suppose you purchase two September 2020 cotton futures contracts on this day, at a price of...
Suppose you purchase two September 2020 cotton futures contracts on this day, at a price of $4.357 per bushel. The contract size of the futures is 20 bushel. What will your profit or loss be if corn prices turn out to be $6.281 per bushel at expiration? -76.96 3.848 153.92 -38.48 76.96
The contract size for platinum futures is 50 troy ounces. Suppose you need 350 troy ounces...
The contract size for platinum futures is 50 troy ounces. Suppose you need 350 troy ounces of platinum and the current futures price is $1,035 per ounce. How many contracts do you need to purchase? How much will you pay for your platinum? What is your dollar profit if platinum sells for $1,065 a troy ounce when the futures contract expires? What if the price is $980 at expiration? (A negative value should be indicated by a minus sign. Do...
It is February 2018. A manufacturer of jewelry must purchase 5,000 ounces of silver in July...
It is February 2018. A manufacturer of jewelry must purchase 5,000 ounces of silver in July 2018 so that it can meet production requirements for existing Christmas inventory orders from various retailers. However, the firm’s managers are concerned that recent market volatility may lead to a spike in precious metals prices before July. The managers decide to hedge the firm’s exposure using the September 2018 silver futures contract. They purchase one contract on February 6 when the futures price is...
The contract size for platinum futures is 50 troy ounces. Suppose you need 500 troy ounces...
The contract size for platinum futures is 50 troy ounces. Suppose you need 500 troy ounces of platinum and the current futures price is $930 per ounce. How many contracts do you need to purchase? How much will you pay for your platinum? What is your dollar profit if platinum sells for $980 a troy ounce when the futures contract expires? What if the price is $880 at expiration? (A negative value should be indicated by a minus sign. Do...
Suppose you sell seven August 2020 gold futures contracts one week ago, at a price of...
Suppose you sell seven August 2020 gold futures contracts one week ago, at a price of $1516 per ounce. The contract size of the futures is 100 ounce. If the spot gold price is $1745 and the gold futures price is $1710 today, what is your total profit or loss from this futures contract? -271600 -160300 135800 -135800 160300
Suppose you sell five August 2020 gold futures contracts one week ago, at a price of...
Suppose you sell five August 2020 gold futures contracts one week ago, at a price of $1692 per ounce. The contract size of the futures is 100 ounce. If the spot gold price is $1700 and the gold futures price is $1666 today, what is your total profit or loss from this futures contract? -13000 4000 13000 26000 -4000
Suppose you sell five August 2020 gold futures contracts one week ago, at a price of...
Suppose you sell five August 2020 gold futures contracts one week ago, at a price of $1753 per ounce. The contract size of the futures is 100 ounce. If the spot gold price is $1729 and the gold futures price is $1694 today, what is your total profit or loss from this futures contract? 12000 -29500 59000 29500 -12000
Suppose you purchase a silver futures contract with a price of $17.82 per ounce and the...
Suppose you purchase a silver futures contract with a price of $17.82 per ounce and the exchange date is in the next week. The price of silver closes at $17.75 on the day that you enter the futures contract. The spot price of silver then rises to $17.80 the next day. If the futures contract is marking to market on a daily basis as the price changes, what is your cash flow at the end of the next business day?
Suppose a few days ago you sold a silver futures contract at $18 per ounce. Each...
Suppose a few days ago you sold a silver futures contract at $18 per ounce. Each contract covers 5,000 ounces. The initial margin of the contract is $1 per ounce and the maintenance margin is $0.07. The settlement prices of the past four days were $17.945, $17.948, $17.920, and $17.970. Today’s settlement price is $17.983. a. What is the value of the contract (to you) before it is marked-to-market? b. What is the value of contract after it is marked-to-market?
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT