What cut-off settlement price will you get margin call

Assignment Help Financial Management

Reference no: EM132016640

1. Suppose the current spot rate is USD 1 = MXN 20. A put option with a strike price of $0.0525 is ___________ and a put option with a strike price of $0.0475 is __________.

A) in the money, in the money

B) out of the money, out of the money

C) out of the money, in the money

D) in the money, out of the money

E) need to know the option premiums to answer the question

2. Yesterday, you entered into a futures contract to buy €62,500 at $1.35/€ (that is €1 = $1.35). Your initial margin was $3,750. Your maintenance margin requirement is $2,000. At what cut-off settlement price will you get a margin call?

A) $1.3220/€

B) $1.3780/€

C) $1.4720/€

D) $1.5280/€

E) None of the above

Reference no: EM132016640

Questions Cloud

Corresponding complex name : For the following four protein complexes in the electron transport chain, please describe their corresponding complex name

Binding of hemoglobin to oxygen : Describe the relationship between chemical equilibrium and the binding of hemoglobin to oxygen.

What is the current market value of the firm debt : The yield to maturity is 11%, so the bonds now sell below par. What is the current market value of the firm's debt?

Identifying enzymes that can be used in same digestion : Part of the challenge of restriction digesting is identifying enzymes that can be used in the same digestion with a single buffer.

What cut-off settlement price will you get margin call : At what cut-off settlement price will you get a margin call?

Bacteria and of certain eukaryotes : Polysaccharides play an important role in the cell walls of prokaryotes such bacteria and of certain eukaryotes like fungi and plants

Discuss the benefits of a forensic readiness plan : Prior to any incident happening, it is important for any company to implement a "forensic readiness" plan. Discuss the benefits of a forensic readiness plan.

Why do cells maintain ps on the interior of the cell : What happens when this does not happen? Why do cells maintain PS on the interior of the cell?

Describe the product subject to recall : Analyze whether the manufacturer would be liable for negligence if the product had not been recalled and had caused harm to a consumer.

User Account

All Pages