What are companys gains or losses from its futures positions

Reference no: EM133512685

Problem A. An investor enters into a long position in 10 silver futures contracts at a futures price of $4.52/oz and closes out the position at a price of $4.46/oz. If one silver futures contract is for 5,000 ounces, what are the investor's gains or losses?

Problem B. An investor enters into a short futures position in 10 contracts in gold at a futures price of $276.50 per oz. The size of one futures contract is 100 oz. The initial margin per contract is $1,500, and the maintenance margin is $1,100.

Problem C. You enter into a short crude oil futures contract at $43 per barrel. The initial margin is $3,375 and the maintenance margin is $2,500. One contract is for 1,000 barrels of oil. By how much do oil prices have to change before you receive a margin call?

Problem D. An oil refining company enters into 1,000 long one-month crude oil futures contracts on NYMEX at a futures price of $43 per barrel. At maturity of the contract, the company rolls half of its position forward into new one-month futures and closes the remaining half. At this point, the spot price of oil is $44 per barrel, and the new one-month futures price is $43.50 per barrel. At maturity of this second contract, the company closes out its remaining position. Assume the spot price at this point is $46 per barrel. Ignoring interest, what are the company's gains or losses from its futures positions?

Reference no: EM133512685

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