Depositing an initial margin

Assignment Help Finance Basics
Reference no: EM132499439

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at $248. Her analysis suggests that July oats should be trading at about $240 in a couple of months. Assuming that her expectations hold up, what kind of return on invested capital will she make if she shorts three July oats contracts (each contract covers 5,000 bushels of oats) by depositing an initial margin of $540 per contract?

Reference no: EM132499439

Questions Cloud

Calculate western investment group share price : Using the constant dividend growth model, calculate Western Investment Group's share price (P). Give your answer in dollars and cents to the nearest cent.
Identify six weaknesses in the internal controls described : Identify six (6) weaknesses in the internal controls described. Discuss the implications of each of the weaknesses you have identified.
Identify both the strengths and needs of the family : The family is in an enduring social institution, and today, many families are being impacted by the needs of their aging members. The family, as a unit.
What are your impressions of faith development : What are your impressions of faith development in relation to an individual's other developmental processes? Do you feel that there is interconnection.
Depositing an initial margin : Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at $248.
What the loss to be recognized from the sale is : What The loss to be recognized from the sale is? On May 1, 2011, Platypus Ltd. purchased a new machine for $132,000. At the time of acquisition, the machine
What are a bond key features : You are vice president of Money Management and in charge of pension fund division. A major new client, AA Berhad has requested Money Management
Compute what are the projected total operating assets : Find What are the projected total operating assets? Do not round intermediate calculations. Round your answer to the nearest dollar.
What is the companys sustainable growth rate : Dinosaur Chicken Co. had sales of 70,000,000, expenses. The board approved dividends totaling 4,500,000. What is the company's Sustainable Growth Rate?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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