Exam 14: Futures Contracts

What is the price difference on a $100,000,10-year Treasury note futures contract between the highest and lowest prices at which the bond traded on this day? Treasury note,$100,000,pts and one-half of 1/32 of a point

Which one of the following statements is correct?

Which of the following features apply to a futures contract? I.zero-sum game II.derivative security III.maturity date IV.settlement procedure

What is the absolute price difference on a $100,000,5-year Treasury note futures contract between the high and low prices? Treasury note,$100,000,pts and one-quarter of 1/32 of a point

You own a portfolio which is valued at $10 million and which has a beta of 1.5.You would like to create a riskless portfolio by hedging using S&P 500 futures contracts.The contract size is $250 times the index level.How many futures contracts do you need to acquire if the current S&P 500 index is 1500?

The 5-month futures price on a non-dividend-paying stock is $44.30.The risk-free rate is 3.0 percent and the market rate is 9.50 percent.What is the spot rate for this stock if spot-futures parity exists?

A financial instrument on which a futures contract is based is called which one of the following?

You own three November crude oil futures contracts.What is the settlement value of those contracts at the end day?

The spot price of corn is $5.85 a bushel.The 3-month futures price of corn is $5.80.Which one of the following best describes this market?

A stock is currently selling for $28 a share and has a dividend yield of 3.2 percent.The risk-free rate is 2.5 percent.What is the 6-month futures price on this stock?

You can withdraw funds from your margin account without closing your futures contract given which two of the following? I.marking-to-market deducts funds from your margin account II.marking-to-market adds funds to your margin account III.margin balance after the withdrawal will exceed the maintenance margin requirement IV.margin balance after the withdrawal will exceed the initial margin requirement

The 4-month futures price on a non-dividend-paying stock is $25.00.The risk-free rate is 2.5 percent and the market rate is 9.0 percent.What is the spot rate for this stock if spot-futures parity exists?

Will purchased 3 futures contracts on corn.The contract size is 5,000 bushels and the price is quoted in cents per bushel.Assume the initial margin requirement is 4.5 percent of the contract value.What is the amount of the initial margin if the futures quote is 624?

Which one of the following statements related to futures contracts is correct?

A long hedge is the addition of which one of the following to a short position in the underlying asset?

The 3-month futures price on a non-dividend-paying stock is $31.80.The risk-free rate is 2.5 percent and the market rate is 9.5 percent.What is the spot rate for this stock if spot-futures parity exists?

Which one of the following terms applies to the amount of money required when a futures position is first bought or sold?

Futures margin is defined as the deposit of funds into a futures trading account for which one of the following purposes?

You currently have a long position in the 3-month futures market.Which one of the following would be a reverse trade to this position?

Futures contracts exist for which of the following? I.pork bellies II.S&P 500 index III.Eurodollars IV.cocoa