Reference no: EM133091243
1. Select an Exchange from the list below:
• Intercontinental Exchange
• Chicago Board of Trade
• New York Mercantile Exchange
• Kansas City Board of Trade
• Minneapolis Grain Exchange
• New York Board of Trade
• Chicago Mercantile Exchange
• Chicago Board Options Exchange
• Boston Options Exchange
• Euronext
2. Background and characteristics of the Exchange.
• Typical Derivatives traded
• Procedures
• Trading Rules (For ten commodities, Size of contracts, Expiry dates, warehousing arrangements , what ‘grades' of commodities/securities are acceptable for contracts. )
• How does exchange prepare for defaults.
3. Describe the Margin Rules of the exchange and set up margin accounts for 1 commodity both long and short positions . Assume you can afford 10 contracts and the trading period is the month of November to December. Determine the dollar profit or loss . Use excel to set up the margin accounts.
4. Any recent developments in these exchanges (increase in initial margins, maintenance margins etc) and reasons for changes.