What is your profit of loss

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Q1. As a wheat producer, you are concerned that wheat prices may fall below their current level of $35/bushel when your crop is ready, six months from today. Therefore, you enter into the appropriate futures contract at the current spot price. What is your profit of loss, if six months later, wheat is selling at the spot market for $42/bushel?

Q2. Saban Enterprises 3 month call options are priced at $1.25/option and the stock is currently trading at $22.25/share. You buy 300 options with a strike price of $25.00/ share. What do you do, and what is your net position if, at expiration, Saban stock is trading at $28.00 per share?

Q3. N. Harris stock is currently priced at $18.75/share. You buy 200 put options that expire in 2 months at a price of $0.75/option. The strike price of $ 21.00/share. What do you do, and what is your net position if, at expiration, Harris stock is trading at $23.25/share?

Reference no: EM132853603

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