Investor have to deposit on the investment

Assignment Help Financial Management
Reference no: EM13769081

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.

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

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.

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?

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: EM13769081

Questions Cloud

Correct forward price and recommend an arbitrage strategy : Suppose the US dollar and Euro interest rate for the next one year are 1.5% and 2%, respectively. Both are annually compounded. The spot price of Euro is $1.3000, and the one-year forward price of Euro is $1.2900. Determine the correct forward price ..
Viewpoint of developmental psychology : Conduct research concerning the background of your selected individual to determine what forces impacted his or her life from the viewpoint of developmental psychology.
Analyze projects instead of a numerical analysis : When would it be more appropriate to use the business case approach to analyze projects instead of a numerical analysis? This is a Business 345 Technology College Class for the University of Southern Maine
Safety training in safety-first organizations : The author writes on page 36, "Don't let your negative attitude about safety give employees an excuse for developing a bad attitude." What does the author mean by this statement? Give an example.
Investor have to deposit on the investment : 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. How much did the investor have to depos..
Crisis intervention human service delivery system : Describe the services provided by your selected mental health or crisis intervention human service delivery system. Describe the general characteristics and skills needed to effectively deliver mental health and crisis intervention services
Different divisions-its low-risk division accounts : The Diversified Growth Co. has three different divisions. Its low-risk division accounts for $5 million of its assets and has a beta of 0.8. Its middle-risk division accounts for $10 million of its assets and has a beta of 1.1, while its high-risk di..
What makes teams work brilliantly in a company : What makes teams work brilliantly in a company? Looking for paragraph or two please.
Which one is stronger out of life a slave girl and frederick : Which one is stronger out of Life a slave girl and Frederick Douglass and why?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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