Question 1: The soybean contract has a trading unit of 5,000 bu. If you would like to hedge on 15,000bu, how many futures contracts should you buy or sell?
Question 2: The feeder cattle contract has a trading unit of 50,000 pounds. If you would like to hedge on 750,000 pounds, how many futures contracts should you buy or sell?
Question 3: The gold contract has a trading unit of 100 troy ounces. If you would like to hedge on 15,000 troy ounces, how many futures contracts should you buy or sell?
Question 4: The Dow Jones Industrial Average contract has a trading unit of $10 x the Dow Jones Industrial Average Index. If you have 5 contracts in the long position, what is the value of your loss if the Dow Jones Industrial Average Index falls by 13 points?
Question 5: The Nasdaq 100 contract has a trading unit of $100 x the Nasdaq 100 index. If you have 4 contracts in the short position, what is the value of your loss if the Dow Jones Industrial Average Index rises to 8 points?