What is his margin account balance

Assignment Help Financial Management

Reference no: EM131989337

Speculation with a futures contract Before any trading, George begins with a margin account balance of $0. On May 1, George believes that silver will appreciate in the next 4 days.

On May 1, George takes a long position in a futures contract for silver with a futures price of $10/ounce. Each contract is for 1000 ounces of silver.

The initial margin is $3000 and the maintenance margin is $2500. On May 2, the settlement futures price is $9.80/ounce.

On May 3, the settlement futures price is $9.10/ounce. On May 4, George offsets with a futures contract with a futures price of $9.40/ounce. Note that all contracts are for silver with delivery date of May 25.

After George offsets on May 4, what is his margin account balance?

Reference no: EM131989337

Questions Cloud

Find average number of units in the system : In a waiting line situation, arrivals occur at a rate of 2 per minute, and the service times average 24 seconds. Assume the Poisson and exponential distribution

Why should stevens company accept the offer : If the outside supplier offers to sell Part X for $34.50 each, should Stevens Company accept the offer? Clearly state your answer and support your answer.

Overview of the traits of inclusive leadership : An overview of the traits of inclusive leadership. An analysis of the key leadership skills required for an inclusive organizational culture.

What can be the possible key performance indicators : What can be the possible Key performance Indicators (KPI) for reducing operating costs in an software developing organization.

What is his margin account balance : On May 1, George takes a long position in a futures contract for silver with a futures price of $10/ounce. Each contract is for 1000 ounces of silver.

Prepare the journal entries for teal : Teal Windows manufactures and sells custom storm windows for three-season porches. Prepare the journal entries for Teal in 2017.

Plan on an incremental cost? basis : Assuming? one-time stockout costs for lost sales of ?$125 per? unit, inventory carrying costs of ?$25 per unit per? month, and zero beginning and ending?

How would you try to profit using swaps : You are a speculator and you believe that interest rates will rise. How would you try to profit using swaps?

Conduct analysis and show excel functions to obtain npv : The company will have to purchase a new system to replace the current CRM system. The system has an initial cost of $1.4 million.

User Account

All Pages