The following table shows the futures price data today for Commodity X, and you purchased a futures contract today at the settlement price. (Contract size : 30,000 kg of Commodity X) Open High Low Settlement Change Open Interest Today $16.28 $16.33 $16.25 $16.29 $(0.02) 6,338 Calculate the total value of this futures contract. If the initial and maintenance margin requirements are 15% and 10% of the contract value respectively, calculate the amount of deposit required to execute this contract. If the prices of the commodity X in the next 3 trading days are : $16.27, $16.40 and $16.97, calculate the profit/loss per kilogram of commodity X, total value of the contract, and the mark-to-market settlement. If additional margin is required, indicate when it is necessary and the additional deposit amount.
The following table shows the futures price data today for Commodity X, and you purchased a futures contract today at the settlement price. (Contract size : 30,000 kg of Commodity X) Open High Low Settlement Change Open Interest Today $16.28 $16.33 $16.25 $16.29 $(0.02) 6,338 Calculate the total value of this futures contract. If the initial and maintenance margin requirements are 15% and 10% of the contract value respectively, calculate the amount of deposit required to execute this contract. If the prices of the commodity X in the next 3 trading days are : $16.27, $16.40 and $16.97, calculate the profit/loss per kilogram of commodity X, total value of the contract, and the mark-to-market settlement. If additional margin is required, indicate when it is necessary and the additional deposit amount.
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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- The following table shows the futures price data today for Commodity X, and you purchased a futures contract today at the settlement price. (Contract size : 30,000 kg of Commodity X)
|
|
Open |
High |
Low |
Settlement |
Change |
Open Interest |
|
Today |
$16.28 |
$16.33 |
$16.25 |
$16.29 |
$(0.02) |
6,338 |
- Calculate the total value of this futures contract.
- If the initial and maintenance margin requirements are 15% and 10% of the contract value respectively, calculate the amount of deposit required to execute this contract.
- If the prices of the commodity X in the next 3 trading days are : $16.27, $16.40 and $16.97, calculate the
profit/loss per kilogram of commodity X, total value of the contract, and the mark-to-market settlement. If additional margin is required, indicate when it is necessary and the additional deposit amount.
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