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

User Account

All Pages