User Account

All Pages

Remit in order to be able to short gold future

Assignment Help Finance Basics
Reference no: EM131765176

The futures price of gold is $1,250. Future contracts are for 100 ounces of gold, and the margin requirement is $5,000 a contract. The maintenance margin requirement is $2,500. You expect the price of gold to go down; therefore you short one gold future contract at the prevailing price of $1,250. Show your work.

a. How much must you initially remit in order to be able to short gold future?

b. If future price of gold rises to $1,265, do you make a profit or loss?

c. Estimate your profit or loss both in dollar and in percent if future gold price goes up to 1,265.

d. If the future price of gold declines to $1,230, estimate your profit or loss? Assume you shorted at $1,250.

Reference no: EM131765176

Questions Cloud

Compute net cash flow from sale of the software : Techno Corp. management is considering developing new computer software. The cost of development will be $675,000, and management expects the net cash flow.
Find amount of compensation expenses windom should record : The amount of compensation expenses Windom should record for 2007 under the fair value method is
Discuss categories of accounts on the financial statements : specific category or categories of accounts on the financial statements are misstated and if they are overstated or understated
Compute the amount owed on the mortgage : Thayer Company purchased a building on January 2 by signing a long-term $3360000 mortgage with monthly payments of $30800.
Remit in order to be able to short gold future : a. How much must you initially remit in order to be able to short gold future?
Compute the break-even point in units and sales dollars : Poole Corporation has collected the following information after its first year of sales. Compute break-even point in units and sales dollars for the first year
Create portfolio of local suppliers for new line of keyboard : Phillip? Witt, president of Witt Input? Devices, wishes to create a portfolio of local suppliers for his new line of keyboards.
Describe the adolescent brain : Describe Sternberg's Triarchic theory of love and explain three key points from the video "How we will love" and related them to the theory.
Compute the balance in the common stock account : At the time that EDF Company issued a 2 for 1 stock split, the company had 1,000 shares at $5 par value common stock outstanding.

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