Question 1
George purchased a futures contract at 349. The contract is on 2500 units, requires a 10% margin deposit and is priced in cents per unit. George sold the contract at 278. What is George's return on invested capital?
◦ -255.4%
◦ -203.4%
◦ -155.4%
◦ -103.4%
Question 2
Hedging in the commodities market is a strategy primarily used by
◦ individual investors with high risk tolerance levels for commodities.
◦ institutional investors on behalf of their conservative investors.
◦ by producers and processors of commodities.
◦ investors looking for short-term capital gains.