【正文】
month of August. In June, the September corn futures are selling for $ per bushel (1K = 5,000 bushels). Farmer Smith wishes to lock in this price. Show the transactions if the Sept spot price rises to $. Revenue from Crop: 10,000 x 30,500 June: Short 2K = 29,400 Sept: Long 2K = 30,500 . Loss on Position ( 1,100 ) Total Revenue $ 29,400 Ex Commodity Speculation real world Nov: Short 3 May K (.4400 x 38,000 x 3 ) = + 50,160 Feb: Long 3 May K (.4850 x 38,000 x 3 ) = 55,290 Loss of % = 5,130 You have lived in NYC your whole life and are independently wealthy. You think you know everything there is to know abot pork bellies (uncurred bacon) because your butler fixes it for you every morning. Because you have decided to go on a diet, you think the price will drop over the next few months. On the CME, each PB K is 38,000 lbs. Today, you decide to short three May Ks cents per lbs. In Feb, the price rises to cents and you decide to close your position. What is your gain/loss? Margin ? The amount (percentage) of a Futures Contract Value that must be on deposit with a broker. ? Since a Futures Contract is not an actual sale, you need only pay a fraction of the asset value to open a position = margin. ? CME margin requirements are 15% ? Thus, you can control $100,000 of assets with only $15,000. Ex Commodity Speculation real world with margin Nov: Short 3 May K (.4400 x 38,000 x 3 ) = + 50,160 Feb: Long 3 May K (.4850 x 38,000 x 3 ) = 55,290 Loss = 5,130 Loss 5130 5130 Margin 50160 7524 You have lived in NYC your whole life and are independently wealthy. You think