You have taken a short position in a futures contract on corn at £2.60 per bushel.Over the next 5 days the contract settled at 2.52,2.57,2.62,2.68,2.70.Before you can reverse your position in the futures market on the fifth day you are notified to accept delivery.What will you receive on delivery and what is the net amount you receive in total?
A) £2.60; £-0.10
B) £2.60; £0.10
C) £2.60; £2.70
D) £2.70; £-0.10
E) £2.70; £2.60
Correct Answer:
Verified
Q7: Comparing long-term bonds with short-term bonds,long-term bonds
Q23: A financial institution can hedge its interest
Q23: In percentage terms, higher coupon bonds experience
Q24: A financial institution has equity equal to
Q26: The duration of a 15 year zero
Q30: If you bought a futures contract for
Q32: A pure discount bond pays:
A)no coupons, therefore
Q33: A set of bonds all have the
Q35: Interest rate and currency swaps allow one
Q49: A bank has a $50 million mortgage
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents