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

Directions

Use your textbook to answer the following questions from Chapter 

Exercise 17, 19, 23, and 27. 

1. Please, upload xls, xlsx file.
2. Please, use the full computing power of Excel.

Questions

17.  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?

19.  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.

23.  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?

27.  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?