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Followup Report for the Team Project

Essay by   •  September 9, 2015  •  Research Paper  •  260 Words (2 Pages)  •  1,149 Views

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Professor Wu

Fin 368

Team No.7

Team member:

Yating Pang, Nan Zhen, Kunlun Tang, Lidan Bao

            Followup report for the team project

                                        -crude oil futures

                                       

In our project, we estimated that crude oil’s price will go up in next three month. So we decided to long crude oil futures.  

Team Project Hypothetical trade:

Futures

Crude oil WTI

Position

Long

Number of contracts are taken

20

Maturity (month)

Aug 2015

Date of entering into Position

March 25

Price of entering into Position

51.51$

Period that I plan to hold this position

3 month

Short term result

After we finished the project, we follow the Aug 2015 crude oil futures price.  

[pic 1]

         Crude oil WTI Futures price( 3/1/2015-4/15/2015)

From this chart, we can see crude oil futures price already went up a lot since March 25. The trend of crude oil futures price change was exactly like our forecast in the team project.

Conclusion

The price of crude oil futures was already above our target price ($54.01/barrel ).

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