Tell me what you know...are they up? are they down?
2007-02-17 11:46:36 · 2 answers · asked by Anonymous in Business & Finance ➔ Investing
They are the stuff from which we get bacon. Are they up or down? Yep, all the time.
The next link is to the Chicago Mercantile Exchange (CME), which trades contracts on frozen pork bellies. The contract is for 40,000 pounds of cut and trimmed pork bellies, again the stuff from which bacon is sliced and packaged. The CME sets contracts in only five months (so the news item below was from another exchange): February, March, May, July, and August.
If you bought a contract, say, of March 2007 on CME, it opened Friday at 106.00, went up to a high of 106.60, went down to a low of 103.00, but closed at 103.05. During the day, it flopped around inside that range of numbers. So was it up or down? Yes. However, if you had a contract the day before, this close was 1.65 below what it closed at Thursday. If you are "long" as in you bought a contract for the price to go up, you lost money. If you are "short" as in you sold a contract in expectation that the price would go lower, congratulations you made money, about $660. (do the math)
2007-02-17 12:34:15 · answer #1 · answered by Rabbit 7 · 2⤊ 0⤋
Trading places...classic
2007-02-17 20:18:53 · answer #2 · answered by Anonymous · 1⤊ 0⤋