A silver futures contract requires the seller to deliver 5,000 troy ounces of silver. An investor sells one July silver futures contract at a price of $8 per ounce, posting a $2,025 initial margin. If the required maintenance margin is $1,500, the price per ounce at which the investor would first receive a maintenance margin call is closest to: a. $5.92 b. $7.89 c. $8.11 d. $10.80
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- Speculation with a futures contract Before any trading, George begins with a margin account balance of $0. On May 1, George believes that silver will appreciate in the next 4 days. On May 1, George takes a long position in a futures contract for silver with a futures price of $10/ounce. Each contract is for 1000 ounces of silver. The initial margin is $3000 and the maintenance margin is $2500. On May 2, the settlement futures price is $9.80/ounce. On May 3, the settlement futures price is $9.10/ounce. On May 4, George offsets with a futures contract with a futures price of $9.40/ounce. Note that all contracts are for silver with delivery date of May 25. After George offsets on May 4, what is his margin account balance? Show how you calculate your answer.On Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer the following questions. DaySettleMonday$ 97,406.25Tuesday$ 98,000.00Wednesday$ 100,000.00 The cumulative rate of return on your investment after Wednesday is a __________. Multiple Choice 79.86% loss 2.63% loss 33.00% gain 53.95% lossOn Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer the following questions. Day Settle Monday $ 97,406.25 Tuesday $ 98,000.00 Wednesday $ 100,000.00 After Monday's close the balance on your margin account will be ________.
- On Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to determine the balance on your margin account after Monday's close. Day Settle Monday $ 97,406.25 Tuesday $ 98,000.00 Wednesday $ 100,000.00 $2,700 $2,000 $3,137.50 $2,262.50 97406.25help - only answer is okA trader bought two July futures contracts. Each contract is for the delivery of 1,000 barrels. The initial margin is $11,250 per contract and the maintenance margin is $9,000. Calculate the daily gain and loss and margin account balance from April 13, 2020 to April 15, 2020 and explain when the investor will receive a margin call and how much does he need to top up?
- Jon establishes a long position of one T-bond future today for a settlement price of 101'02. The exchange requires an initial margin of $2700 and a maintenance margin of $2500. Below are the next two days closing price on this contract. Day 1: settlement price100'31 Day 2: settlement price 99'30 The margin account balance after two days is Numeric Response dollarsA 60-day $500 note with interest at 9.5% was written on July 15. The maker approaches the payee on August 9 to propose an early settlement. What amount should the payee be willing to accept on August 9 if short-term investments can earn 7.25%? Multiple Choice O O O O O $502.30 $503.40 $584.30 $502.50 $504.30On Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to calculate your cumulative rate of return on your investment at the close of day on Tuesday. Day Settle Monday $ 97,406.25 Tuesday $ 98,000.00 Wednesday $ 100,000.00 16.2% −5.8% −0.16% −2.2% 10%
- Please help meIf the spot price for silver is $18.56 per ounce, what should the futures contract price be for a three-month contract at an annual interest rate of 3.5%?Spot price of silver is $26.36/oz and the quoted interest rate is 2.76% for 3 months. There are no storage or transaction costs, but borrowers have to pay 0.5% above the quoted rate. Determine the maximum possible no-arbitrage price for a 3-month futures contract on silver.