When opening a new position on futures contract, a broker requires initial margin of 15% (of the initial contract size). The broker requires an investor to replenish his margin account when the balance falls below the maintenance margin of 10% (of initial contract size). What is the margin account balance of short trader at t-3? Futures prices each day are given below. They opened 10 contracts, and contract size is 100 bushels. t-0 (initial trade) t-1 t-2 t-3 a) $150 b) $240 c) $120 d) $60 Futures Price (per bushel) $0.4 $0.45 $0.35 $0.36 Long Position Margin Short Position Margin ???

When opening a new position on futures contract, a broker requires initial margin of 15% (of the initial contract size). The broker requires an investor to replenish his margin account when the balance falls below the maintenance margin of 10% (of initial contract size). What is the margin account balance of short trader at t-3? Futures prices each day are given below. They opened 10 contracts, and contract size is 100 bushels. t-0 (initial trade) t-1 t-2 t-3 a) $150 b) $240 c) $120 d) $60 Futures Price (per bushel) $0.4 $0.45 $0.35 $0.36 Long Position Margin Short Position Margin ???

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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Suppose that on September 05, 2021, a company takes a short position in one April 2022 live - cattle futures contract. One contract is for the delivery of 50,000 pounds of cattle. The initial margin for each contract is $\$ 3, 000 $ and the maintenance margin is $\$ 2,000 $. The futures price (per pound) is 180.00 cents when it enters into the contract.(a) If the company receives a margin call at the end of the third day to deposit a variation margin of $1250, what is the settlement price at the end of the day?
Give typing answer with explanation and conclusion An investor has a $1 million long position in T-bond futures. The investor’s broker requires a maintenance margin of 4.25%. Next day the value of the futures contracts drops by $30,000 to $970,000. By what amount he will receive a margin call? $28,725 $45,000 $30,000 $28,650 NOT ENOUGH DATA TO ANSWER $43,650
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Please no written by hand and no image 2. A forward contract for 4 months is entered into when a stock index is at 1000. If the risk free interest rate is 3% per year (with continuous compounding) and the dividend yield on the index is 2% per year, what is the futures price? After 1 month the index price is 980, what is the value of the futures agreement assuming the risk free rate with continuous compounding is now 5% (but the original dividend rate remains 2%) and the contract price is equal to $50 times the index value?
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Give typing answer with explanation and conclusion
Ay 2. Gains and losses are recognized daily IMR = $2,530, MMR = $2,300, for a T-Bond futures $100,000. Suppose you buy one June contract at the open of $98,500, Monday’s settle price is 98’10, and Tuesday’s close is 97’00. What is in your margin call in Tuesday’s settle?
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 dollars
Question A .In April you bought two futures contracts on FOJC when the future price was US 286 cents per pound with an initial margin of US$5,000 per contract. Each contract is for delivery of 15,00 pounds. If your maintenance margin is US$3,750, what price change in FOJC would lead to a margin call? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
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