Contracts in the dow futures

Assignment Help Financial Management

Reference no: EM13807327

You have taken a short position of 3 contracts in the Dow futures (trade $10 times the index) at a price of 16,300. The initial margin is $6,500 and the maintenance margin is $5,200 for the contract. At the time you entered the position you had equity in the account of $23,000. If the futures settlement is 16,560, will you get a margin call and if so how much would the margin call be for?

Reference no: EM13807327

Questions Cloud

For each piecewise linear function graph the function : For each piecewise linear function graph the function and find: lim f(x) lim f(x) lim f(x) x->4- x->4+ x->4 (a) f(x) = { x-2 if x =4 (b) f)x)= ( 2 if x =3

What is expected return and standard deviation of portfolio : Stock X has an expected return of 8% and Stock Z has an expected return of 12%. The standard deviation of the expected return is 10% for both stocks. Assume that these are the only two stocks available in a hypothetical world. What is the expected re..

What is the price of the bond : A bond with 20 years until maturity has a coupon rate of 7.4 percent and a yield to maturity of 7.5 percent. What is the price of the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places. Omit the "$" sign in your resp..

Present value of the expected future stream of dividends : In 1965, Warren Buffett acquired control of a New England textile business called Berkshire Hathaway for about $10 a share. Today the stock sells for around $120,000 a share and Mr. Buffett is the wealthiest person in the United States. The stock has..

Contracts in the dow futures : You have taken a short position of 3 contracts in the Dow futures (trade $10 times the index) at a price of 16,300. The initial margin is $6,500 and the maintenance margin is $5,200 for the contract. At the time you entered the position you had equit..

A marketing director for a mexican taco restaurant : A marketing director for a Mexican Taco Restaurant located in Lynchburg, VA. The average order size of your customers is $7.00 per order. That means that when all your food orders are divided by your total number of customers, the average order amou..

Entered into a long position in the t-note futures : You have entered into a long position in the T-note futures of 5 contracts at a price of 125,000. The T-note Futures contract has a face value of $100,000 and trades in % and 32nd of 1%. The initial margin requirement for the contract is $1,430 and t..

Websites to gather information about the facility : People often use hospital websites to gather information about the facility; therefore, it is very important that hospitals implement well-designed websites to market services to the public. Hospital marketing professionals should work with a web des..

Decided to speculate that the price of crude oil will rise : You have decided to speculate that the price of crude oil will rise. You have entered into a position of 4 contacts of Light Sweet Crude Oil (1,000 barrels per contract, trades in dollars and cents per contract) at a price of $58.25. The initial marg..

User Account

All Pages