Chapter_25 - Chapter 25 Problems 1-16 Input boxes in tan...

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Chapter 25 Problems 1-16 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-in" be installed in Excel. To install these, click on "Tools|Add-Ins" and select "Analysis ToolPak and "Solver Add-In."
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Chapter 25 Question 1 Input Area: Final cocoa price $1,402 Initial cocoa price $1,435 Tons per contract 10 Output Area: Initial contract value $14,350 Final contract value $14,020 Gain/(Loss) $(330)
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Chapter 25 Question 2 Input Area: Ending price per ounce $11.15 Ending price per ounce $9.05 Initial price per ounce $10.1070 Ounces per contract 5,000 Number of contracts sold 5 Output Area: Initial contract value $50,535.00 Final contract value $11.15 $55,750.00 Gain/(Loss) on short position $(26,075.00) Final contract value $9.05 $45,250.00 Gain/(Loss) on short position $26,425.00
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Chapter 25 Question 3 Input Area: Exercise price per barrel $35 # barrels bought 50,000 Oil prices: $30 $32 $35 $38 $40 Output Area: The call option gives the manager the right to purchase oil futures contracts at a $35 per barrel. The manager will exercise the option i $35 Selling put options obligates the manager to buy o futures price of $35 per barrel. The put holder will exerc falls below $35 The payoffs per barrel are: Oil futures price: $30.00 $32.00 $35.00 Value of call option position: $- $- $- Value of put option position: $(5.00) $(3.00) $- Total value: $(5.00)### $(3.00) $- The payoff profile is identical to that of a forward contract with a $ $35
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futures price of if the price rises above oil futures contracts at a cise the option if the price $38.00 $40.00 $3.00 $5.00 $- $- $3.00 $5.00 strike price.
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Chapter 25 Question 4 Input Area: # of long futures 10 Initial settle price $480 Ounces per contract 100 Final settle price: Day 1 $473 Day 2 $479 Day 3 $482 Day 4 $486 Output Area: Initial value of position $480,000 Day 1: New position value
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