User Account

All Pages

Calculate the value of the trader margin account

Assignment Help Accounting Basics
Reference no: EM132776444

Trader enters into a short position in a silver futures contract for 5,000 troy ounces with delivery in 120 days. The futures price is $26.50 and the initial margin is USD 15,000 per contract.

Porblem 1- Three reasons why the trader might want to enter into a long position?

Porblem 2- Calculate the value of the trader's margin account after 6 days, if the futures price drops by $2 on the first day, then increases by $1.5 dollars on each of the following 5 days.

Porblem 3- After 10 days the trader wants to close out his position. Explain how he can do that?

Porblem 4- Calculate the trader's profit from the investment after closing out her position on day 10 if the futures price is $24.

Reference no: EM132776444

Questions Cloud

Conduct a self-reflection of your learning in the course : Please review the course objectives stated in the Syllabus. Conduct a self-reflection of your learning in the course and how you personally have met each of.
What is the maximum cca can take on the asset for the april : Class 8 asset with a rate of 20?%. What is the maximum CCA deduction A1A can take on this asset for the April 1 to December? 31, 2020 fiscal? year?
How high is the window above the ground : A ball dropped from a window strikes the ground 2.27 seconds later. How high is the window above the ground?
What impact did your project have on your target population : For nurses, reflection is integral to higher-level thinking. You should be able to critically analyze scenarios and possible outcomes as opposed to simply.
Calculate the value of the trader margin account : Calculate the value of the trader's margin account after 6 days, if the futures price drops by $2 on the first day, then increases by $1.5 dollars
Why a needle is magnetized : -Explain, using the domain theory, why a needle is magnetized when it is rubbed in one direction with a strong magnet.
Find the location of the place along the x axis : Find the location of the place along the x axis where the electric field due to these two charges is zero.
What is the net displacement of the virus : What is the net displacement (in mi) of the virus from 1999 to 2004? Magnitude? Direction?
How much was the auditor paid for audit and non-assurance : How much was the auditor paid for the audit and non-assurance, or other, services? Explain your understanding about demand and supply theories of audit fees

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd