# You sold one silver future contract at 3 per ounce

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36. You sold one silver future contract at \$3 per ounce. What would be your profit (loss) at maturity if the silver spot price at that time is \$4.10 per ounce? Assume the contract size is 5,000 ounces and there are no transactions costs. A. \$5.50 profit B. \$5,500 profit C. \$5.50 loss D. \$5,500 loss E. none of the above. \$3.00 - \$4.10 = -\$1.10 X 5,000 = -\$5,500. Difficulty: Moderate 37. You purchased one corn future contract at \$2.29 per bushel. What would be your profit (loss) at maturity if the corn spot price at that time were \$2.10 per bushel? Assume the contract size is 5,000 ounces and there are no transactions costs. \$2.10 - \$2.29 = -\$0.19 X 5,000 = -\$950. Difficulty: Moderate 22-19

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Chapter 22 - Futures Markets 38. You sold one corn future contract at \$2.29 per bushel. What would be your profit (loss) at maturity if the corn spot price at that time were \$2.10 per bushel? Assume the contract size is 5,000 ounces and there are no transactions costs. \$2.29 - \$2.10 = \$0.19 X 5,000 = \$950. Difficulty: Moderate 22-20
Chapter 22 - Futures Markets 39. You sold one wheat future contract at \$3.04 per bushel. What would be your profit (loss) at maturity if the wheat spot price at that time were \$2.98 per bushel? Assume the contract size is 5,000 ounces and there are no transactions costs. \$3.04 - \$2.98 = \$0.06 X 5,000 = \$300. Difficulty: Moderate 40. You purchased one wheat future contract at \$3.04 per bushel. What would be your profit (loss) at maturity if the wheat spot price at that time were \$2.98 per bushel? Assume the contract size is 5,000 ounces and there are no transactions costs. A. \$30 profit B. \$300 profit C. \$300 loss D. \$30 loss E. none of the above. \$2.98 - \$3.04 = -\$0.06 X 5,000 = -\$300. Difficulty: Moderate 22-21

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Chapter 22 - Futures Markets 41. On January 1, you sold one April S&P 500 index futures contract at a futures price of 420. If on February 1 the April futures price were 430, what would be your profit (loss) if you closed your position (without considering transactions costs)? \$420 - \$430 = -\$10 X 250 = -\$2,500 Difficulty: Difficult 22-22
Chapter 22 - Futures Markets 42. On January 1, you bought one April S&P 500 index futures contract at a futures price of 420. If on February 1 the April futures price were 430, what would be your profit (loss) if you closed your position (without considering transactions costs)? \$430 - \$420 = \$10 X 250 = \$2,500 Difficulty: Difficult

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• Spring '10
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