Ask Question
19 January, 10:51

You have taken a short position in a futures contract on corn at $3.74 per bushel. Over the next 5 days (Day 1 to Day 5) the contract settled at 3.68, 3.71, 3.67, 3.64, and 3.61. Before you can reverse your position in the futures market you are notified on Day 5 to complete delivery. What will you receive on delivery per bushel and what is the net amount per bushel you receive in total

+1
Answers (1)
  1. 19 January, 12:40
    0
    In finance, short selling (also known as shorting or going short) is the practice of selling assets, that have been borrowed from a third party with the intention of buying identical assets back at a later date to return to the lender.

    So in the given scenario the investor would be at lose of

    Selling price = 3.74 per bushel

    Purchase price = 3.61 per bushel

    therefore lose of $ 0.13 per bushel you need to pay off.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “You have taken a short position in a futures contract on corn at $3.74 per bushel. Over the next 5 days (Day 1 to Day 5) the contract ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers