Consider a hypothetical futures contract in which the current price is $82. The initial margin requirement is $5, and the maintenance margin requirement is $2. You go long 20 contracts and meet all margin calls but do not withdraw any excess margin. The settlement price and the spot price of the underlying from day 0 to day 6 look like the following: Day Settlement Price 82 1 84 2 90 3 80 4 78 5 82 6 84 (1) Suppose you might receive margin call at the beginning of the day BEFORE you can trade. You need to put up additional fund into your account if your beginning balance is less than the maintenance margin. The first day that you will receive margin call should be Day (2) The total amount that you are going to put in your account, from day 0 to day 6, will be (3) The total loss and profit from Day 0 to Day 6, if the long holder always stays in the market, should be

Q: Discuss the major characteristics of a theory.

A: Discussion of major characteristics of a theory

Q: Explain the characteristics

A:

Q: Define the Base Case and the Proposed Alternatives?

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Q: How to choose a Benchmark?

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Q: Describe about the intuitive approach?

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Q: Describe the assumptions underlying CVP analysis?

A: Cost-Volume-Profit Analysis (CVP Analysis): CVP Analysis is a tool of cost accounting that measures…

Q: Explain the purpose of the conceptual framework.

A:

Q: How about the second question?

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Q: Consider REMICs?

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Q: What is this question answer?

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