User Account

All Pages

If the investor kept her position and the futures price on

Assignment Help Finance Basics
Reference no: EM13584235

An investor sold seven contracts of June/2012 corn. The price per bushel was $1.64, and each contract was for 5000 bushels. The initial margin deposit is $2000 per contract with the maintenance margin at $1250.

1. How much did the investor have to deposit on the investment?

2. The prices of the futures on the four days following the short sales were 1.60, 1.66, 1.70, and 1.75. Calculate the current balance on each of the next four days.

3. If the investor closed out her position on the fifth day, what was her final gain or loss over the five days in dollars and as a percentage of investment?

4. If the investor kept her position, and the futures price on the sixth day was 1.80, would the investor face a margin call? If yes, how much would she need to put up?

Reference no: EM13584235

Questions Cloud

Patricia exchanges office equipment with an adjusted basis : patricia exchanges office equipment with an adjusted basis of 20000 for 5000cash and office equipment with a fmv of
Draw a product possibilities curve for automobiles and : 1. here is the production possibilities table for war goods and civilian
The spot price of euro is 13000 and the one-year forward : suppose the us dollar and euro interest rate for the next one year are 1.5 and 2 respectively. both are annually
Kevin exchanges an office building used in business for one : kevin exchanges an office building used in business for one owned by charlene. the fmv of kevins building is 28000
If the investor kept her position and the futures price on : an investor sold seven contracts of june2012 corn. the price per bushel was 1.64 and each contract was for 5000
Thios year john purchased property from william by assuming : thios year. john purchased property from william by assuming an existing mortgage of 40000 and agreed to pay an
When resisto systems inc was formed the company was : when resisto systems inc. was formed the company was authorized to issue 5000 shares of 100 par value 8 percent
What is the chance that the scientists first successful : a scientist attempts to perform a difficult experiment. she is successful in about 80 of her attempts. she attempts the
Find the value of a european call option with an exercise : a stock currently sells for 50. in six months it will either rise to 55 or decline to 45. the risk-free interest

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd