Concept explainers
A
To calculate: The investment amount with the broker to trade the September maturity contract.
Introduction: The monthly deposit amount is depending on the previous amount. September deposit value is depending on the March investment. Maturity contracts are agreement based on the period of time.
B
To calculate: Return percentage of the net investment at the long side of the contract if future prices to be 2090.
Introduction: Return percentage is ratio of the credit amount to the net investment. Credit amount is the product of the dollar value to the increment.
C
To calculate: Return percentage when future price is fall down by 1%
Introduction: Return is the final payment after the maturity period. The percentage value is given compared with the previous value.The March price is fall down by theNet return percentage is depend on the credit value and decreased value.
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