HMWK 3 AND 4

FINA 3383

Homework #4

From a recent Wall Street Journal, pick up a quotation of each of the following securities and answer the questions that follow. Report each quotation in full with the date of the Journal at the top of every question. Everyone is expected to work individually with different quotations. Copying or multiple submissions will be severely penalized.

1. Commodity futures (choose any commodity)

(a) Name the primary commodity or asset for the contract

(b) Name the exchange (in full) on which the contract is traded

(c) What is the size of the contract?

(d) For any given delivery date, state the settlement price of the contract.

(e) Assuming 10% initial margin, how much money do you need to buy 10 contracts?

(f) What does the “open interest” number mean?

2. Interest rate Futures (Choose bonds or notes)

(a) Name the primary commodity or asset for the contract

(b) Name the exchange (in full) on which the contract is traded

(c) What is the size of the contract?

(d) For any given delivery date, compute the settlement price of the contract.

(e) Assuming 15% initial margin, how much money do you need to buy 10 contracts?