What change in the futures price will lead to a margin call

Assignment Help Civil Engineering
Reference no: EM131404225

Suppose that you enter into a short futures contract to sell July silver for 55.20 per ounce on the New York Commodity Exchange. The sire of the contract is 5.000 ounces. The initial margin is 54.000, and the maintenance margin is 53,000. What change in the futures price will lead to a margin call? What happens if you do not meet the margin call?

Reference no: EM131404225

Questions Cloud

Apatha company has assets of $600000 liabilities of $250000 : 1. The primary objective of financial accounting is: 2. Apatha Company has assets of $600,000, liabilities of $250,000 and equity of $350,000. It buys office equipment on credit for $75,000. The effects of this transaction include:
Probability that at least 7 of them are actively involved : Using the 90% figure, and considering a random sample of 10 large corporations, what is the probability that at least 7 of them are actively involved in data warehousing?
What is the probability that a golfer select : What is the probability that a golfer selected at random will complete at least 2 rounds of golf on his or her next outing?
Discuss how culture influences working styles : What are the issues - The main issues to be discussed in this report are: How culture influences working styles. Different management styles
What change in the futures price will lead to a margin call : The initial margin is 54.000, and the maintenance margin is 53,000. What change in the futures price will lead to a margin call? What happens if you do not meet the margin call?
What is the probability that the customer will end up : The customer accepts this gesture of goodwill and 9 units are sent. What is the probability that the customer will end up with at least 8 working computers?
What steps you take to protect playstation-four trade secret : ETH 321- What steps must you take in order to obtain all the necessary trademark, copyrights, and patents for the new gaming console? What steps should you take to protect the PlayStation4 trade secret?
What is the expected number of faculty vehicles : Under the assumption that the average faculty member has just one registered vehicle, and applying the vehicle theft rate reported for the city, what is the expected number of faculty vehicles that will be stolen during the upcoming year?
Probability of getting 5 or more with such blemishes : If it were true that just 2% of the tires produced have surface blemishes, what would be the probability of getting 5 or more with such blemishes in a random sample of 40 tires?

Reviews

Write a Review

Civil Engineering Questions & Answers

  Determine graphically magnitude and direction of resultant

Knowing that the tension is 120 lb in AB and 40 lb in AD, determine graphically the magnitude and direction of the resultant of the forces exerted by the stays at A

  What should be the design capacity of the distribution pipes

A water supply system is being designed to serve a population of 200,000 people with an average per-capita demand of 600L/Person-day (peak demand factor is 1.8) and a needed fire flow of 28,000 L/min.

  Differential equation of motion

the differential equation of motion for the col-lar in terms the angle? the reaction force exerted by the track on the collar as a function of the angle ?

  What is the reason for the relatively high strength of wood

The de-carburization of a steel can also be described by the error fuction. Starting with the equation, (cx-c0)/(sc-c0) = 1-erf(x/(2*(sqrt(Dt)))), and taking cs=0 derive an expression to describe the concentration profile of carbon as it diffuses out..

  Would the nand gate be preferred over the and gate

If you had to build a computer out of just one type of gate, would the NAND gate be preferred over the AND gate? Why or why not?

  Compute the normal depth with a bottom width

A trapezoidal channel with a bottom width of 4 feet and side slopes 2:1 (H:V) and a bed slope of 1 percent conveys a discharge of 50,000 gpm. Assume n = 0.025. Compute the normal depth

  What is the local acceleration midway along the nozzle

the velocity varies linearly with time throughout the nozzle. the velocity at the base is 1t and at the tip is 4t. what is the local acceleration midway along the nozzle when t=2s

  Determine the elevation and stationing of the high point

a 520 ft long equal tangent crest vertical curve connects tangents that intersect at station 340 00 and elevation 1325 ft the initial grade is if 4 and the final grade is 2.5 determine the elevation and stationing of the high point PVC AND PVT

  Show how you would provide adequate drainage

Use Rankine's method to calculate the lateral forces. Neglect the passive resistance at the front of the wall.

  How to complete standardized test is normal random variable

Past experience indicates that the time for high school seniors to complete a standardized test is normal random variable with a mean of 35 minutes.

  Determine what is the maximum intensity

During a 60 minute storm the following amounts of rain fell during successive 15 minute intervals: 33mm, 23mm, 15mm, and 5mm. What is the maximum intensity

  Why irc 37-2012 has taken 90 percentile for pavement design

Why IRC 37-2012 has taken 90th percentile for pavement design of expressway or NH while they hav taken 80th percentile for state highway design?

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