You decided to speculate in the market and sold 7 platinum futures contracts when the futures price was $385 per troy ounce. The price on the contract maturity date was $400. The contract size is 50 troy ounces. What was your total profit or loss on the settlement day if you had to cover your position in the spot market? Show your answer to the nearest $. Do not use $ or, signs in your answer. Use a - sign if you lose money.

You decided to speculate in the market and sold 7 platinum futures contracts when the futures price was $385 per troy ounce. The price on the contract maturity date was $400. The contract size is 50 troy ounces. What was your total profit or loss on the settlement day if you had to cover your position in the spot market? Show your answer to the nearest $. Do not use $ or, signs in your answer. Use a - sign if you lose money.

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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Consider a hypothetical futures contract where the current price is $ 212. The initial margin requirement is $ 10 and the maintenance margin requirement is $ 8. You enter into long 20 contracts and meet all margin requirements, but do not withdraw any excess margin. B. Complete the table below and explain all deposited funds. Suppose the contract was purchased at the settlement price of that day, so there is no gain or loss at current market prices on the day of purchase. C. What is your total profit or loss by the end of Day 6?
Yesterday, you entered into a futures contract to buy €62,500 at $1.50/€. Your initial margin was $3,750 (-0.04 x €62,500 × $1.50/€ -4 percent of the contract value in dollars). Your maintenance margin is $2,000 (meaning that your broker leaves you alone until your account balance falls to $2.000). At what settle price (use 4 decimal places) do you get a margin call? O $1.5280/€ O $1.4720/€ O none of the options $1.500/€
Assume that you entered into a futures contract to buy C82,500 at $1.20 per C. Suppose the futures price closes today at $1.25. How much have you made/lost? tof Select one: O a You have made $2.500.00. O b. You have made $4125.00. O G. You have lost $2,500.00. Od You have lost $4,125.00.
You entered into a futures contract to buy €62,500 at $1.20/€ yesterday. Your initial margin was $4,200. Your maintenance margin is $2,500 (meaning that your broker leaves you alone until your account balance falls to $2,500). At what settle price will you get a margin call? $1.2750/€ $1.0272/€ $1.1728/€ O $1.5800/€
Yesterday, you entered into a futures contract to buy €62,500 at $1.50 per €. Your initial performance bond is $1,500 and your maintenance level is $500. At what settle price will you get a demand for additional funds to be posted? ANSWER D IS CORRECT BUT WHAT IS THE PROCEDURE BUT HOW DO I GET THERE? a) $1.5160 per €. b)$1.208 per €. c)$1.1920 per €. d)$1.4840 per €. Correct
suppose you buy an non-dividend paying asset at $50 and sell a 6 month futures contract at $53. What is your profit or lost at expiration if the asset price down to $47? current 6 month interest is 0.25% p.a. (Ignore carrying costs and transaction cost)? What happens to the basis through the contract's life? a.none of the above b.it initially decreases, then increases c.it initially increases, then decreases d.it moves toward zero at expiry e.it remains relatively steady
A trader entered into a long S&P index futures contract when the futures price is 2,591 and closed it out when the futures price is 2,704. What is his gain or loss in dollars? The contract multiplier is $250. Write your answer in the format as 10000 or -10000, no dollar sign, no comma.
You have a long position in one soybean futures contract. The initial margin was $3,250 and the maintenance margin is $1,750. At the close of trading yesterday, the futures price was $8.03 per bushel and the balance in your margin account was $4,500. Today, the settlement price for soybean futures is $7.33. Will you receive a margin call and what deposit will you be required to make? $1,750 O no margin call; $0. O $2,250 $2,750
You placed $120,000 in your future trading account have just bought your first HSI June 2023 futures contract today @ 19,652, at market close the HSI June 2023 future closed at 19,534. Currently the initial margin for HSI is $101,944, the maintenance margin is $81,555. HSI futures is $50 per index point. What is you margin account balance as of market closed today? Please write out the detailed calculation steps
1)Demonstrate how a Margin Account operates for both the Long and the Short futures position using the following information (you do not need to adjust the values given for contract size or number of contracts): The initial margin is R30. The initial Futures price is R100. On Day 1 the price drops to R90. On Day 2 the price rises to R95. Fill in the correct monetary values for the margin account values (a) through to (f) in your answer booklet. Take care to show the signs (negative and positive) of your cash flows. LONG SHORT DAY 0 (a) (b) DAY 1 (c) (d) DAY 2 (e) (f)
Suppose that you enter into a short futures contract to sell July silver for $17.20 per ounce. The size of the contract is 5,000 ounces. The initial margin is $4,000, and the maintenance margin is $3,000.What change in the futures price will lead to a margin call?What happens if you do not meet the margin call?
9. An investor buys a futures contract an asset when the futures price is $1,500. Each contract is on 100 units of the asset. The contract is closed out when the futures price is $1,540. Which of the following is true A. The investor has made a gain of $4,000 B. The investor has made a loss of $4,000 C. The investor has made a gain of $2,000 D. The investor has made a loss of $2,000

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