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If you are interested in purchasing a December futures contract what is the price of a 37500 lbs contract for December delivery

If you are interested in purchasing a December futures contract, what is the price of a 37,500 lbs contract for December delivery?

a.$43,500

b.$37,500

c.$32,500

d.$47,500

 

 

 

45.Refer to Exhibit 17-2. What was the lowest contract price for coffee futures for June delivery on this trading day?

a.$39,375

b.$37,500

c.$38,625

d.$42,000

 

 

 

46.Refer to Exhibit 17-2. What was the highest contract price that the September coffee future has traded for over its lifetime?

a.$40,125

b.$56,625

c.$40,500

d.$42,375

 

 

 

 

47.Refer to Exhibit 17-2. For purposes of marking to market, what is the current price of coffee futures for December?

a.$41,625

b.$53,625

c.$41,250

d.$43,500

 

 

 

48.Refer to Exhibit 17-2. Suppose that yesterday you purchased one September coffee futures contract at the settle price. At the end of today’s trading day what is the change in the value of your contract?

a.$3,000

b.-$3,000

c.$3,750

d.-$3,750

 

 

 

49.Refer to Exhibit 17-2. Suppose that yesterday you sold one September coffee futures contract at the settle price. At the end of today’s trading day what is the change in the value of your contract?

a.$3,000

b.-$3,000

c.$3,750

d.-$3,750

 

 

 

50.Refer to Exhibit 17-2. How many December coffee futures contracts were outstanding at the end of the trading day?

a.17,832

b.6,379

c.1,397

d.7,776

 

 

 

51.Which of the following has led to an increase in demand for strategies to hedge corporate risk?

a.fluctuations in interest rates

b.fluctuations in exchange rates

c.fluctuations in the price of raw materials

d.all of the above

 

 

 

52.In historical terms, although not necessarily the case now, risk management has focused on firm-specific events such as

a.currency risk.

b.interest rate risk.

c.worker’s compensation claims.

d.none of the above.

 

 

 

53.What is the single most common concern among managers engaged in risk management?

a.interest rate risk

b.currency exchange risk

c.raw materials price risk

d.none of the above

Feb 13 2020 View more View Less

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