A currency speculator wants to speculate on the future movements of the E. The speculator expects the € to appreciate in the near future and decides to concentrate on the nearby contract. The broker requires a 2% Initial Margin (IM) and the Maintenance Margin (MM) is 75% of IM. Following € Futures quotes are currently available from the Chicago Mercantile Exchange (CME). Euro (CME)-€125,000; S/E High Open 1.2216 1.2276 Low Settle Change Open Interest 1.2175 1.2259 -0.0018 255,420 19,335 June Sept 1.2229 1.2288 1.2189 1.2269 -0.0018 Compute the Initial Margin (IM) amount in the Margin Account. CA $3,087.96 OB.$3,057.25 OC. $3,064.75 D.$3,054.00
A currency speculator wants to speculate on the future movements of the E. The speculator expects the € to appreciate in the near future and decides to concentrate on the nearby contract. The broker requires a 2% Initial Margin (IM) and the Maintenance Margin (MM) is 75% of IM. Following € Futures quotes are currently available from the Chicago Mercantile Exchange (CME). Euro (CME)-€125,000; S/E High Open 1.2216 1.2276 Low Settle Change Open Interest 1.2175 1.2259 -0.0018 255,420 19,335 June Sept 1.2229 1.2288 1.2189 1.2269 -0.0018 Compute the Initial Margin (IM) amount in the Margin Account. CA $3,087.96 OB.$3,057.25 OC. $3,064.75 D.$3,054.00
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
Problem 1PS
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Transcribed Image Text:QUESTION 5
A currency speculator wants to speculate on the future movements of the E. The speculator expects the € to appreciate in the near future and
decides to concentrate on the nearby contract. The broker requires a 2% Initial Margin (IM) and the Maintenance Margin (MM) is 75% of IM.
Following € Futures quotes are currently available from the Chicago Mercantile Exchange (CME).
Euro (CME)-€125,000; $/€
Low Settle Change Open Interest
1.2175 1.2259 -0.0018 255,420
1.2189 1.2269 -0.0018
19,335
Compute the Initial Margin (IM) amount in the Margin Account.
Open
High
June
1.2216 1.2276
Sept 1.2229 1.2288
ⒸA $3,087.96
OB. $3,057,25
OC. $3,064.75
D.$3,054.00
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