Changes to the traders margin account

Assignment Help Financial Management
Reference no: EM131850117

Suppose on March 8th 2017, a US trader goes short 10 futures contracts for EUR, maturity in 110 days. Each euro contract is worth €125,000. The initial margin is $6,000 per contract, and the maintenance margin is $4,250 per contract. Suppose over the next 10 days (after position is initiated) the futures price for the EUR/USD was as follows (example 1.0541 on March 8th 2017 means $1.0541 = €1): 21-Mar-17 1.0811 20-Mar-17 1.0739 17-Mar-17 1.0738 16-Mar-17 1.0766 15-Mar-17 1.0735 14-Mar-17 1.0604 13-Mar-17 1.0654 10-Mar-17 1.0672 9-Mar-17 1.0577 8-Mar-17 1.0541 Prepare a table showing changes to the traders margin account over these 10 days.

Reference no: EM131850117

Questions Cloud

Instead of using traditional injection-mold techniques : use these printers to produce small and medium products for customers, instead of using traditional injection-mold techniques.
Discuss the relationship between the spot and forward rate : Discuss the relationship between the spot and forward rate. What is the difference between the futures market and the Forward market?
What happens to market-clearing equilibrium interest rate : What happens to market-clearing equilibrium interest rate when expected inflation increases? Why?
What should price of euros be on six-month forward contract : The exchange rate between US dollars and Euros is currently $1.18/€. What should the price of Euros be on a six-month forward contract?
Changes to the traders margin account : Prepare a table showing changes to the traders margin account over these 10 days.
Company report for cash from investing activities : What amount (in $ millions) did the company report for cash from investing activities?
Calculate the value of the annuity : Calculate the value of the annuity at t = 25 using the following methods. Sum up the value of each individual payment
Consider currency option for the british pound : Consider a currency option for the British pound. Contract amount of British pounds £10 million, strike price $1.200 per £1, annual standard deviation 14.0%,
What is the time-driven activity-based costing method : What is the time-driven activity-based costing method (TDABC), and how does it differ from the methods listed below

Reviews

Write a Review

Financial Management Questions & Answers

  Retirement goal

How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal?

  What is the proportion invested in each of two risky funds

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.0%. What is the standard devia..

  Based on efficient market system with no taxes or issue cost

MM's dividend irrelevance proposition is based on an efficient market system with no taxes or issue costs. According to the MM dividend irrelevance proposition, since investors do not need dividends to convert their shares to cash, they will not pay ..

  The patterns of cash flows for these firms differ

Select the growth firm, the firm in danger of bankruptcy, and the firm that is the older firm expanding slowly. Explain your selection.

  Evaluate the present value of the introduction of new chip

Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to introduce a new chip, and it forecasts annual sales of 12 million of these improved chips at a price of $25 each. What is the proper cash f..

  Relationship between the yield to maturity-apr and ear

Define the difference between a Job Order Cost System and Process Cost System

  Labor intensive and have highly technical equipment

Financial management of a department is difficult to say the least. Our departments are labor intensive and have highly technical equipment, both of which are very expensive. Please develop two methods for labor and equipment that would provide quali..

  Shares of common stock outstanding at market price

Sound Systems (SS) has 200,000 shares of common stock outstanding at a market price of $37 a share. SS recently paid an annual dividend in the amount of $1.20 per share. Peter's Audio has a yield to maturity on its debt of 7.8 percent, a cost of equi..

  Money market hedge on payables

Use the following information to calculate the dollar cost of using a money market hedge to hedge 200,000 pounds of payables due in 180 days.

  Find the wacc and unlevered cost of capital for synergies

Assuming that synergies in the merger have the same risk as that of Wyeth’s cash flows, find the WACC and the unlevered cost of capital for the synergies.

  Create a decision tree-using treeplan

Create a decision tree, using TreePlan. What recommendation, based on expected value, would you give James?

  Book value and market value of its stockholders equity

What are the book value and market value of its stockholders’ equity?

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!

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