How much must the speculator initially remit

Assignment Help Finance Basics

Reference no: EM13269185

The futures price of corn is $2.00. The contracts are for 10,000 bushels, so a contract is worth $20,000. The margin requirement is $2,000 a contract, and the maintenance margin requirement is $1,200. A speculator expects the price of the corn to fall and enters into a contract to sell corn.

a. How much must the speculator initially remit?
b. If the futures price rises to $2.13, what must the spectator do?
c. If the futures price continues to rise to $2.14, how much does the speculator have in the account?

Reference no: EM13269185

Questions Cloud

Determine the minimum height necessary for the ball : You want to design the loop-the-loop toy. The idea is that a ball of mass m=0.01 kg, determine the minimum height necessary for the ball to remain in contact with the track during the whole loop-the-loop journey

Which strategy works best if a bidding war erupts : If you were Smith's financial advisor, which strategy would you advise he establish? Or would you argue that he not speculate on this takeover?

What is a matlab program to compute the capacitance per unit : the cross-section of a rectangular capacitor is shown below. it consists of a 12mm by 12mm conducting strip shielded by a 20 mm by 20mm rectangular conductor and separated by air. using the finite difference method,

Compute the final temperature of the water : Assuming no energy is transferred to or from the surroundings, calculate the final temperature of the water after all the ice melts.

How much must the speculator initially remit : The futures price of corn is $2.00. The contracts are for 10,000 bushels, so a contract is worth $20,000. The margin requirement is $2,000 a contract, and the maintenance margin requirement is $1,200.

Find the force exerted on the pilot by the airplane seat : An airplane pilot with a mass of 90.0-kg pulls out of a dive by following the arc of a circle whose radius is 300 m at a constant speed of 190 km/h. find the force exerted on the pilot by the airplane seat

Example of multivariate analysis : Example of multivariate analysis and what is the mean number of faculty in the College of Arts and Science at Delta University

Explain the percent by mass of oxygen in a gaseous mixture : What is the percent by mass of oxygen in a gaseous mixture whose molar composition is 0.500% CO2 and 99.500% air. The composition of air is 21% mole O2, 79% mole N2, and has an average molar mass of 29.0 g/mol.

Find the rate of return on a preferred stock : Find the rate of return on a preferred stock with a $50 par value, a stated dividend rate of 6% and a current market price of $34.

User Account

All Pages