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1. Assume a futures price of Php5000 at the start of the transaction, with Php250 initial margin requirement and a Ph150 maintenance margin requirement. The trader takes in a long position of 10 contracts. Marking- to-market process occurs over the period of seven trading days. A. Complete the table above for the holder of the long position. B. When could there be a margin call? C. How much are the total gains or losses by the end of day 7? Futures Beginning Balance Funds Settlement Ending Balance Day Price Gain/Loss Deposited Price Change 5000 4960 4800 1 2 3 5050 5175 4 5200 5250.50 5310.75 6 7 D. Complete the table above for the holder of the short position. Futures

1. Assume a futures price of Php5000 at the start of the transaction, with Php250 initial margin requirement and a Ph150 maintenance margin requirement. The trader takes in a long position of 10 contracts. Marking- to-market process occurs over the period of seven trading days. A. Complete the table above for the holder of the long position. B. When could there be a margin call? C. How much are the total gains or losses by the end of day 7? Futures Beginning Balance Funds Settlement Ending Balance Day Price Gain/Loss Deposited Price Change 5000 4960 4800 1 2 3 5050 5175 4 5200 5250.50 5310.75 6 7 D. Complete the table above for the holder of the short position. Futures

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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1. Assume a futures price of Php5000 at the start of the transaction, with Php250 initial margin requirement and a Ph150 maintenance margin requirement. The trader takes in a long position of 10 contracts. Marking- to-market process occurs over the period of seven trading days. A. Complete the table above for the holder of the long position. B. When could there be a margin call? C. How much are the total gains or losses by the end of day 7? Futures Beginning Funds Settlement Ending Day Price Gain/Loss Balance Deposited Price Balance Change 5000 1 4960 2 4800 3 5050 4 5175 5 5200 6 5250.50 7 5310.75 D. Complete the table above for the holder of the short position. Futures Beginning Funds Settlement Ending Day Price Gain/Loss Balance Deposited Price Balance Change 5000 1 4960 2 4800 3 5050 4 5175 5 5200 6 5250.50 7 5310.75 Е. How much are the total gains or losses by the end of day 7?
Transcribed Image Text:1. Assume a futures price of Php5000 at the start of the transaction, with Php250 initial margin requirement and a Ph150 maintenance margin requirement. The trader takes in a long position of 10 contracts. Marking- to-market process occurs over the period of seven trading days. A. Complete the table above for the holder of the long position. B. When could there be a margin call? C. How much are the total gains or losses by the end of day 7? Futures Beginning Funds Settlement Ending Day Price Gain/Loss Balance Deposited Price Balance Change 5000 1 4960 2 4800 3 5050 4 5175 5 5200 6 5250.50 7 5310.75 D. Complete the table above for the holder of the short position. Futures Beginning Funds Settlement Ending Day Price Gain/Loss Balance Deposited Price Balance Change 5000 1 4960 2 4800 3 5050 4 5175 5 5200 6 5250.50 7 5310.75 Е. How much are the total gains or losses by the end of day 7?
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