You buy 35 copper futures contracts when the futures price is €1.29 per lbs (each contract is for 25,000 lbs). If you eventually settle the contract at €1.15, what is your total payoff?

The process of buying something in one market at a low price and simultaneously selling it in another market at a higher price to generate an immediate, risk-free profit is called:

You buy 20 pork bellies futures contracts when the futures price is €5.67 per lbs (each contract is for 40,000 lbs). If you eventually settle the contract at €5.78, what is your payoff?

Suppose that the spot exchange rate on the British pound is £0.5142/€. The one year risk-free rate for borrowing in dollars is 7% and 9% for borrowing in pounds. What should be the one year forward exchange rate?

You sell 50 gold futures contracts when the futures price is €356.75 per ounce (each contract is for 100 ounces). If the price on the maturity date is €321.45, what is your payoff?

You plan to buy a 1 year zero coupon bond two years from today. If the forward price is €808.75 and a three year zero-coupon bond currently sells for €725.25, what is the implicit risk free rate?

S and P 500 Index; €250 x index October 2004

	Open	High	Low	Settle	Change	Lifetime High	Lifetime Low	Open Interest
Jan 05	1029.5	1044.2	1028.6	1041.35	+11.70	1044.20	829.05	183,158
Mar 05	1039.3	1052.8	1039.0	1049.9	+11.75	1052.8	907.50	8,621
May 05	1051.4	1062.2	1051.0	1059.35	+11.70	1062.20	953.00	3,338

What was the lowest value of the May 05 contract on the day quoted?

S and P 500 Index; €250 x index October 2004

	Open	High	Low	Settle	Change	Lifetime High	Lifetime Low	Open Interest
Jan 05	1029.5	1044.2	1028.6	1041.35	+11.70	1044.20	829.05	183,158
Mar 05	1039.3	1052.8	1039.0	1049.9	+11.75	1052.8	907.50	8,621
May 05	1051.4	1062.2	1051.0	1059.35	+11.70	1062.20	953.00	3,338

Suppose that yesterday you purchased a Jan 05 futures contract at the settle price. By how much had the value of the contract changed at the end of the business day today (ignore margin considerations)?

You sell 25 wheat futures contracts when the futures price is €302.50 per bushel (each contract is for 5,000 bushels). If you eventually settle the contract at €305.25, what is your profit/loss?

S and P 500 Index; €250 x index May 2004

	Open	High	Low	Settle	Change	Lifetime High	Lifetime Low	Open Interest
June	1029.5	1044.2	1028.6	1041.35	+11.70	1044.20	829.05	183,158
Sept	1039.3	1052.8	1039.0	1049.9	+11.75	1052.8	907.50	8,621
Dec	1051.4	1062.2	1051.0	1059.35	+11.70	1062.20	953.00	3,338

If you were to purchase one December 2004 contract at the settlement price, what is the total futures price?