Problem 3-12 Futures Quotations (LO3, CFA4) Use the following corn futures quote

Question

Problem 3-12 Futures Quotations (LO3, CFA4) Use the following corn futures quotes Corn 5,000 bushele High Low Settle Chg Open In Contract Honth Open Mar May July Sep 55.125 457.000 451-750 452.000 2.750 597,913 467.000 468.000 463.000 463.250 2.750 137,547 477.000 477.500 472.500 473.000 -2.000 153,164 475.000 475.500 471-750 472.250 -2.000 29,258 Suppose you sell 16 of the May corn futures at the high price of the day. You close your position later when the price is 465875 ignoring commission, what is your doliar profit on this transaction? (Do not round intermediate calculations, Round your answer to 2 decimal places.) Dollar proft

Explanation / Answer

Price at which contract was sold= $468

Price at which the position was closed = $465.875

Total profit = (4.68-4.65375)*5000*16 = $2100

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