The gain on your spot market position was $4,000. If the futures price is $3.11 and you settle your position in the futures market, what was your gain or loss on your futures market position? The loss on your futures market position was $4,000. To get the total value of these future contract: multiply the number of contracts by the number of bushels included in the futures contract by the futures price of wheat per bushel It is now November, and you sell 40,000 bushels of wheat at the spot price of $2.86 per bushel. You will SELL future contracts contracts to reduce risk of agricultural prices falling The total value of these futures contracts is If each wheat futures contract is for 5,000 bushels, how many contracts will you buy or sell? The current spot market price of wheat is $2.76 per bushel, and the current December futures price of wheat is $3.01 per bushel. It is September, and you intend to have 40,000 bushels of wheat harvested and ready to sell in November.
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