Calculate the current balance on the next four days

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An investor sold six

1. How much did the investor have to deposit on the investment? contracts of June/2018 corn. The price per bushel was $1.62, and each contract was for 5000 bushels. The initial margin deposit is $3000 per contract with the maintenance margin at $2250.

2. The prices of the futures on the four days following the short sales were 1.58, 1.60, 1.66, and 1.70. Calculate the current balance on each of the next four days.

3. If the investor closed out her position at the end of the fourth day, what was her final gain or loss over the four days in dollars and as a percentage of investment?

4. If the investor kept her position, and the futures price on the fifth day was 1.80, would the investor face a margin call? If yes, how much would she need to put up?

Reference no: EM132621798

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