What is the spot price for a commodity?

Assume you buy 12 frozen orange juice futures contracts at today’s settle price of $1.20 per pound. Each contract represents 10,000 pounds of juice.a. How much total exposure do your 12 contracts represent?b. If tomorrow’s settle price falls by 3 cents per pound, what is your total gain or loss?

Assume you buy 12 frozen orange juice futures contracts at today’s settle price of $1.20 per pound. Each contract represents 10,000 pounds of juice.a. How much total exposure do your 12 contracts represent?b. If tomorrow’s settle price falls by 3 cents per pound, what is your total gain or loss?

What is the spot price for a commodity?

The risk-free rate is 4 percent and the expected return on the market is 11 percent. If a stock has a beta of 1.3, what is its percentage expected return according to the CAPM?

Suppose you observe the following situation:SecurityBetaExpected ReturnAlpha1.514.50%Barton1.212.40%What must the risk-free rate be if these two stocks are correctly priced according to the CAPM?

The risk-free rate is 4 percent and the expected return on the market is 11 percent. If a stock has a beta of 1.3, what is its percentage expected return according to the CAPM?

Given the following information: Probability ofStock A Return ifState of EconomyState of EconomyState OccursRecession0.30-8%Normal0.5012%Boom0.2025%Use the above information to calculate the expected return for Stock A.

A bond has a Macaulay duration of 7.5 years, and its yield increases from 5.25% to 5.60%. Estimate the approximate percentage change in the price of the bond using its Macaulay duration when yields rise by this amount.

Suppose you observe the following situation:SecurityBetaExpected ReturnAlpha1.514.50%Barton1.212.40%What must the risk-free rate be if these two stocks are correctly priced according to the CAPM?