Find your return on invested capital

Assignment Help Financial Management

Reference no: EM131918804

1. PQU stock trades for $56/share on 9/30, but you believe the stock price will decline over the next few days. You decide to use five futures contracts to trade based on your belief. Futures contracts on PQU have 125 shares attached. The price for PQU futures on 9/30 is $54/share. Your broker requires an initial margin of $3000 per contract and a maintenance margin of $1500 per contract.

The price for PQU futures is $67 on 10/2. Find your ending margin balance on 10/2. Assume deficits are eliminated to keep the position open.

6875

23,175

15,000

21,874.5

2. PQU stock trades for $56/share on 9/30, but you believe the stock price will decline over the next few days. You decide to use five futures contracts to trade based on your belief. Futures contracts on PQU have 125 shares attached. The price for PQU futures on 9/30 is $54/share. Your broker requires an initial margin of $3000 per contract and a maintenance margin of $1500 per contract.

Find your return on invested capital if you close your position when PQU trades at $65/share.

-.375

.2432

-.2973

.375

Reference no: EM131918804

Questions Cloud

Current value of call option for both one period : We solved for the current value of a call option for both a one period and the two period model

Identify three healthcare informatics challenges : Identify three healthcare informatics challenges. What are the benefits and risks for each healthcare informatics challenge?

What is the intrinsic value of option : Calculate the value of a European call option that will not pay a dividend. What is the intrinsic value of this option?

Compare difference between a male and female manager : Analyze what you consider to be the four characteristics of an effective manager or leader in the workplace. Consider characteristics such as honesty.

Find your return on invested capital : Find your return on invested capital if you close your position when PQU trades at $65/share.

Discuss ideas about relation between language and reality : Much of Whorf's chapter focuses on the differences between European (SAE) languages and the Hopi language. Describe two examples that Whorf discusses.

Explain what you would have changed or done differently : Prioritize the 3-5 most significant concerns you might have as a supervisor and prioritize the course of action you would take.

Write a proposal that lays out the details of problem : Create a written proposal - You'll write a proposal that lays out the details of this problem, and then explain how you would solve it

What has either encouraged or discouraged the trade : What has either encouraged or discouraged this trade? Provide specific examples and/or illustrations to explain why each is significant.

User Account

All Pages