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Homework answers / question archive / 1
1. you have a home loan for $150,000 at 4.8%. The payment for this loan over 30 years would be $787.00. Find the periodic interest rate (APR divided by compounding periods). Complete the amortization table for the first two months. Round all answers to 2 decimal places. PMT: S Periodic interest rate % or (decimal) Month # Payment ($) Interest ($) $ To Principle Unpaid Balance 0 $150,000.00 1 $ $ $ $ 2 $ $ $ $
2. On March 1, the price of a commodity is $1,000, and the December futures price is $1,015. On November 1, the price of the commodity is $980, and the December futures price is $981. A producer of the commodity entered into a December futures contracts on March 1 to hedge the sale of the commodity on November 1. The producer closed out its position on November 1 The producer of the commodity takes a futures position long Bin short loss
1.PMT: $ 2,83,320 (i.e. $787.00* 30years* 12months)
Periodic Interest Rate: 0.40% per month (i.e. 4.8%/12 months)
| Month# | Payment($) | Interest ($) | $ Principal | Unpaid Balance ($) |
| 0 | - | - | - | 1,50,000.00 |
| 1 | 787.00 | 600.00 | 187.00 | 1,49,813.00 |
| 2 | 787.00 | 599.25 | 187.75 | 1,49,625.26 |
2.COMMIDITY PRODUCER
on march 1 he wiil enter sell december future to hedge
on nov 1 he will closeout his position by taking long on futures
option a is correct
option b is incorrect
becasue question is asking about position not about profit or loss
option c is incorrect
because he was taken short postion in order to close contract he must take long position not short
option d is incorrect
becasue question is asking about position not about profit or loss
give me postive rating
