in the coming 4 weeks: I'd strongly recommend you to get in on it". Trusting his advisor's forecast, Harden is willing to take a sillion dollar position using November copper futures, whose contract size is 1000 pounds. On September 7th, 2021, when den opens his position, the current spot price and November futures price for copper are $280 and $285 per pound, pectively and he needs to post an initial margin of $12,500 per contract. He is also informed that the maintenance margin p stract is $10,000. At the end of the first day of trading, the November futures contract settles at $287 per pound. The ance of Harden's margin account at the close on September 7th, 2021 is, therefore: $840,000 $998,000 $440.000 $1.160.000 None of the other answers
in the coming 4 weeks: I'd strongly recommend you to get in on it". Trusting his advisor's forecast, Harden is willing to take a sillion dollar position using November copper futures, whose contract size is 1000 pounds. On September 7th, 2021, when den opens his position, the current spot price and November futures price for copper are $280 and $285 per pound, pectively and he needs to post an initial margin of $12,500 per contract. He is also informed that the maintenance margin p stract is $10,000. At the end of the first day of trading, the November futures contract settles at $287 per pound. The ance of Harden's margin account at the close on September 7th, 2021 is, therefore: $840,000 $998,000 $440.000 $1.160.000 None of the other answers
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:James Harden has received the following tip from his financial advisor: "James, the price of copper is, very likely, about to jump
up in the coming 4 weeks: I'd strongly recommend you to get in on it". Trusting his advisor's forecast, Harden is willing to take a
1 million dollar position using November copper futures, whose contract size is 1000 pounds. On September 7h, 2021, when
Harden opens his position, the current spot price and November futures price for copper are $280 and $285 per pound,
respectively and he needs to post an initial margin of $12,500 per contract. He is also informed that the maintenance margin per
contract is $10,000. At the end of the first day of trading, the November futures contract settles at $287 per pound. The
balance of Harden's margin account at the close on September 7th, 2021 is, therefore:
$840,000
$998,000
$440,000
$1.160,000
O None of the other answers
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