Question 6 (22 pts): Margin Account Assume you sell one July '23 KC HRW contract today at $5.2875; its initial is $2,310 with a maintenance of $2,100. ○ Today July KC HRW settles at 528'6. What do you deposit in the margin account? 。 Session 2 - July KC HRW settles at 530'2 What is the gain or loss from session 2? What is the balance? Is there a margin call? If so, what is it? ○ Session 3 - July KC HRW settles at 526'6 What is the gain or loss from session 3? What is the balance? Is there a margin call? If so, what is it? ○ Session 4 - Offset July KC HRW at 536'4 What is the gain or loss from session 4? What is the balance? Is there a margin call? If so, what is it? ○ Session 5 - Offset July KC HRW at 540'2 Calculate the profit or loss on the trade.
Question 6 (22 pts): Margin Account Assume you sell one July '23 KC HRW contract today at $5.2875; its initial is $2,310 with a maintenance of $2,100. ○ Today July KC HRW settles at 528'6. What do you deposit in the margin account? 。 Session 2 - July KC HRW settles at 530'2 What is the gain or loss from session 2? What is the balance? Is there a margin call? If so, what is it? ○ Session 3 - July KC HRW settles at 526'6 What is the gain or loss from session 3? What is the balance? Is there a margin call? If so, what is it? ○ Session 4 - Offset July KC HRW at 536'4 What is the gain or loss from session 4? What is the balance? Is there a margin call? If so, what is it? ○ Session 5 - Offset July KC HRW at 540'2 Calculate the profit or loss on the trade.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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![Question 6 (22 pts): Margin Account
Assume you sell one July '23 KC HRW contract today at $5.2875; its initial is $2,310
with a maintenance of $2,100.
○ Today July KC HRW settles at 528'6.
What do you deposit in the margin account?
。 Session 2 - July KC HRW settles at 530'2
What is the gain or loss from session 2?
What is the balance?
Is there a margin call? If so, what is it?
○ Session 3 - July KC HRW settles at 526'6
What is the gain or loss from session 3?
What is the balance?
Is there a margin call? If so, what is it?
○ Session 4 - Offset July KC HRW at 536'4
What is the gain or loss from session 4?
What is the balance?
Is there a margin call? If so, what is it?
○ Session 5 - Offset July KC HRW at 540'2
Calculate the profit or loss on the trade.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa074ba0b-d3c5-4d18-b812-d9059c18f6c2%2F81478843-8b27-4013-844f-bb226837b37e%2Ft7oxnh6_processed.png&w=3840&q=75)
Transcribed Image Text:Question 6 (22 pts): Margin Account
Assume you sell one July '23 KC HRW contract today at $5.2875; its initial is $2,310
with a maintenance of $2,100.
○ Today July KC HRW settles at 528'6.
What do you deposit in the margin account?
。 Session 2 - July KC HRW settles at 530'2
What is the gain or loss from session 2?
What is the balance?
Is there a margin call? If so, what is it?
○ Session 3 - July KC HRW settles at 526'6
What is the gain or loss from session 3?
What is the balance?
Is there a margin call? If so, what is it?
○ Session 4 - Offset July KC HRW at 536'4
What is the gain or loss from session 4?
What is the balance?
Is there a margin call? If so, what is it?
○ Session 5 - Offset July KC HRW at 540'2
Calculate the profit or loss on the trade.
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