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Problem:

An investor has engaged in the following transactions on the futures market

1. Short 25 future contracts on wheat

2. Short 10 future contracts on Gold

3. Long 15 future contracts on Nikkei Stock Average

4. The Opening Price of Wheat is 610 and the closing price is 500, the contract size is 5000 bu, cents per bu

5. The Opening Price of Gold is 1000 and the closing price is 1200, the contract size is 100 troz oz, $per troy oz

6. The Opening Price of the Nikkei is 1700 and closing price is 1750, $5 x index

Task:

Question 1: What is the profit/loss from these transactions?

Question 2: What is the overall profit/loss?

Please provide all workings and also provide all calculations.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91146297

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