The price of KC Wheat contract is trading at $12.00/bu. The current margin requirement is $4,500. What is the percentage of the contract required to be posted in margin? Your initial margin on a trade is $4,500 and your maintenance margin is $2,500. If your account balance falls to $2,000, you will receive a margin call of if the basis is -1.25 and the current futures price is 132.450, the expected cash price is: A Nov Soybean call has a strike price of $13.50. The underlying November futures price is $14.00. The intrinsic value is____. A Jul Corn call has a strike price of $6.75. The underlying July futures price is $4.50. The intrinsic value is _____. A Sep Wheat call has a strike price of $5.00. The underlying September futures price is $7.75. The intrinsic value is___. A Mar Soybean call has a strike price of $15.50. The underlying March futures price is $10.89. The intrinsic value is____. An Aug Soybean meal put has a strike price of $420. The underlying August futures price is $375. The intrinsic value is ____. if the basis is -2.75 and the current futures price is 131.525, the expected cash price is: A Dec Wheat put has a strike price of $4.70. The underlying December futures price is $6.20. The intrinsic value is____. A May Corn put has a strike price of $4.75. The underlying May futures price is $4.50 The intrinsic value is___. A Sep Soybean put has a strike price of $10.30. The underlying September futures price is $11.50. The intrinsic value is____. A $6.70 Dec Corn call is selling for a premium of 35 cents. At the time, Dec Corn futures are trading at $8.25. The time value is_____. A $12.50 Nov Soybean put is selling for a premium of 3 cents. Nov Soybesn futures are trading at $13.50 The time value is____. A Wheat call has a strike price of $5.75. At expiration, the underlying futures price is $6.30. The time value is____. Jul Corn futures are trading at $7.50. A $5.50 July corn call is trading at a premium of 60 cents. The time value is_____. Use the following information to answer the next four questions (17-20): May 15: The Nov soybean price is $6.45/bu and a producer’s expected basis is - $0.30. Put options for Nov beans are trading at 59 c/bu for the $6.75 strike price, and 59 c/bu for the $6.60 strike price. The producer is considering the following marketing strategies: 1) cash market only (no hedge), 2) hedge using futures. For each scenario below, find the net realized price. To simplify matters, assume the producer sells his beans to the local elevator in the 3rd week of October. Show calculations. Scenario 1: Oct 20: Nov futures @ $6.60/bu. Local basis is -$0.50/bu. (Use for 17 and 18) What is the net price using strategy 1 - no hedge? What is the net price using strategy 2 - futures? Scenario 2: Oct 20: Nov futures @ $5.90/bu. Local basis is -$0.15/bu. (Use for 19 and 20) What is the net price using strategy 1 - no hedge? What is the net price using strategy 2 - futures? Suppose that when July comes, the July wheat futures price is $9.55 and the cash price you actually sell the wheat for is $9.10. The actual basis is ___________. Use the following information to answer the next four questions (22-25): May 15: The Nov soybean price is $6.75/bu and a producer’s expected basis is - $0.20. Put options for Nov beans are trading at 61 c/bu for the $6.45 strike price, and 63 c/bu for the $6.35 strike price. The producer is considering the following marketing strategies: 1) cash market only (no hedge), 2) hedge using futures. For each scenario below, find the net realized price. To simplify matters, assume the producer sells his beans to the local elevator in the 3rd week of October. Show calculations. Scenario 1: Oct 20: Nov futures @ $5.55/bu. Local basis is -$0.20/bu. (Use for 22 and 23) What is the net price using strategy 1 - no hedge? What is the net price using strategy 2 - futures? Scenario 2: Oct 20: Nov futures @ $4.75bu. Local basis is -$0.10/bu. (Use for 24 and 25) What is the net price using strategy 1 - no hedge? What is the net price using strategy 2 - futures?