Calculate the changes in the performance bond account

Assignment Help Corporate Finance

Reference no: EM132207216

Question - Given

i) The required deposit in the performance bond account is $5,000;

ii) The settlement price for the day on the Tokyo Mercantile Exchange for futures contract is $20.50/Â¥;

iii) In the next three days settlement prices will be $20.32, $20.42 and $20.30;

iv) Under the circumstances, you will have a long position in the futures contract.

v) The contractual size of one Yen contract is ¥200,000.

Required: From the information above - Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day.

Reference no: EM132207216

Questions Cloud

Result of new computer technology : What common attitudes can be observed when change happens at the workplace as a result of new computer technology?

Whistle regarding ethical behavior at work : What Whistle Blowing process would an employee follow if they decided to blow the whistle regarding ethical behavior at work?

What was the duration of the group therapy : What was the duration of the group therapy? What curative factors might be important for this group and why?

Opportunity to engage in project management topic : This activity will provide you with an opportunity to engage in a project management topic.

Calculate the changes in the performance bond account : Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day

Business man and leadership style : Analysis on Mark Cuban as a business man and leadership style?

Formal statement of a company future plans : A budget is best described as: A formal statement of a company's future plans usually expressed in monetary terms.

Describe the non-alcoholic beverage you will produce : Create your revised NAB company name and explain its significance. Describe the non-alcoholic beverage you will produce and sell.

What is their nominal yield to maturity : A firm's bonds have a maturity of 14 years with a $1,000 face value, have an 8% semiannual coupon, What is their nominal yield to maturity

User Account

All Pages