Maintenance margin and the intial margin

Assignment Help Financial Management

Reference no: EM131047368

What is the difference between the maintenance margin and the intial margin? Does the trader ever have to worry about intial margin after the intial date of the contract? Explain.

Reference no: EM131047368

Questions Cloud

Growth rate in dividends-the stock price for each company : Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $2.80 next year. The growth rate in dividends for all three companies is 4 percent. The required return for each company’s stock is 8 percent, 11 percent, and 14 percent, respectiv..

Dividends will be paid on stock over the next nine years : Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $10 per share dividend 10 years from today ..

With the growth rate falling off to constant : Synovec Co. is growing quickly. Dividends are expected to grow at a rate of 26 percent for the next three years, with the growth rate falling off to a constant 6 percent thereafter. If the required return is 12 percent, and the company just paid a di..

Dividends are expected to grow : Momsen Corp. is experiencing rapid growth. Dividends are expected to grow at 30 percent per year during the next three years, 20 percent over the following year, and then 5 percent per year indefinitely. The required return on this stock is 11 percen..

Maintenance margin and the intial margin : What is the difference between the maintenance margin and the intial margin? Does the trader ever have to worry about intial margin after the intial date of the contract? Explain.

Total assets and accounts payable are proportional to sales : At year-end 2016, Wallace Landscaping’s total assets were $1.7 million and its accounts payable were $445,000. Sales, which in 2016 were $2.6 million, are expected to increase by 30% in 2017. Total assets and accounts payable are proportional to sale..

Issued a corporate bond with face value : Benge Automotive issued a corporate bond with a face value of $1,000, with a 10% annual coupon rate paid semiannually. The bond matures in 12 years and sells at a price of $1,080. What is the component cost of debt for use in the WACC calculation? A ..

Forward contract over futures contract for hedging purposes : Give an example each of a situation where you would prefer a futures contract over or forward contract and conversely when you would prefer a forward contract over futures contract for hedging purposes. Give reasons.

Prefere forward contract over futures contract : Give an example each of a situation where you would prefer a futures contract over or forward contract and conversely when you would prefere a forward contract over futures contract for hedging purposes. Give reasons.

User Account

All Pages