User Account

All Pages

Margin account to prevent liquidation

Assignment Help Finance Basics
Reference no: EM131228179

On the CBOT, the value of one DJIA futures contract is computed as $10 times the value of the Dow Jones Industrial Average, the minimum initial margin is $7,005 and the maintenance margin requirement is $5,604 per contract. If you bought one contract at 11,400 using the minimum initial margin and the price dropped 11,250 on an active trading day, compute the daily percentage profit or loss in your margin account. How much must be deposited in your margin account to prevent liquidation of your position? How much would the DJIA have to fall in a single trading day to wipe you out?

Reference no: EM131228179

Questions Cloud

Monthly mortgage payment : a) What will your monthly mortgage payment be? b) Create an amortization table the at shows the first 5 months of payments, how much goes towards interest and principle, and the outstanding balance
The nmos circuit in given : In the NMOS circuit in Figure, the transistor parameters are: - Determine vO when vX = vY = 5 V. -  What are the values of vGSX , vGSY , vDSX , and vDSY ?
How are leakages and injections related to the circular flow : (Leakages and Injections) What are the leakages from and injections into the circular flow? How are leakages and injections related to the circular flow?
Combine tvm tools : On occasion, you'll run into situations where you need to combine TVM tools. Let's take a look at a situation we can all relate to-retirement planning. Suppose you want to retire in 30 years with enough saved to earn $50,000 per year for 25 years.
Margin account to prevent liquidation : If you bought one contract at 11,400 using the minimum initial margin and the price dropped 11,250 on an active trading day, compute the daily percentage profit or loss in your margin account. How much must be deposited in your margin account to p..
Describe activities that should be implemented to address : Describe the activities that should be implemented to address the missing elements. Describe where these activities would be added to the list (relative to the other activities already listed).
Compute your profit or loss : On the CBOT one Gold futures contract trades in units of 100 ounces of gold. Suppose you bought one contract at $500/ounce and sold as the price spiked to $510/ounce. Compute your profit or loss.
Why are the following business processes important : Ethical behavior is a corporate issue that affects the company's bottom line. How do ethical issues impact organizations and operations? Include an example seen in the workplace, in the news, etc. that relates to real-life situations. Your initia..
Black-scholes option valuation formula : Using the Black-Scholes option valuation formula, compute the price of a Marathon Oil (MRO) call option with 4 months to expiration that has a strike price of 45. Assume the current stock price is 48, the T-bill yield is 4.5%, and the volatility o..

Reviews

Write a Review

Finance Basics Questions & Answers

  Various health care delivery systems

Write an essay of 1,000-1,250 words that examines the similarities and differences between the various health care delivery systems. Be sure to also include:

  Last year your company financed its investments by selling

1.you are comptroller for your company. the ceo is a savvy individual with great instincts for the business. she

  You investes 8000 in two funds paying 2 and 5 annual

you investes 8000 in two funds paying 2 and 5 annual interest. at the end of the year the interest from the 5

  Find the current share price

Baruk Industries has no cash and a debt obligation of $36 million that is now due. The market price of Baruk's assets is $81 million, and the company has no other liabilities.

  Strongest rationale for acquisitions

Describe and justify your choice of five of the Strongest rationale for acquisitions. Explain and justify your choice of five of the Weakest rationale for acquisitions.

  You typically receive 8500 checks per day the daily

npv and collection time - your firm has an average receipt size of 108. a bank has approached you concerning a lockbox

  What is moral hazard

what is moral hazard? how does it relate to current issues in today's society?

  Aggressive working capital policy

1) Aggressive working capital policy

  How well the stock market is performing

To which market index would you refer to see how well the stock market is performing? Why? - Why do you think the movements of the Dow and the S&P 500 are highly correlated?

  What is the original balance

You place $25,000 in a savings account paying an annual compound interest of 8 percent for 3 years and then move it into a savings account that pays 10 percent interest compounded annually. What is the original balance worth at the end of six yea..

  Future value factors

On January 15, 2004, Grant Corp. adopted a plan to accumulate funds for environmental improvements beginning July 1, 2008, at an estimated cost of $2,500,000.

  Complete a swot analysis on the case

Complete a SWOT analysis on the case. Strengths-Weaknesses-Opportunities-Threats-Personal Observations. Each of the 5 topics 200 words at least, with reference citations.

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