What is the minimum deposit necessary

Assignment Help Finance Basics
Reference no: EM133000177

You have a long position in one corn futures contract. Each futures contract calls for the delivery of 5,000 bushels of No. 2 corn. The initial margin was $2,500 and the maintenance margin is $1,250. At the close of trading yesterday, the futures price was $5.25 per bushel and the balance in your margin account was $3,250. Today, the settlement price for corn futures is $5.02. What is the minimum deposit necessary if there was a margin call?

Reference no: EM133000177

Questions Cloud

Calculate weighted average number of shares for sandhill co : Sandhill Corporation had 91,200 common shares outstanding. Calculate the weighted average number of shares for 2020 and earnings per share (EPS).
Why do business research design skills : How and why do "Business research design skills" help/develop/benefit a financial career in investment?
Determining the best investments could be achieved : Assume a firm has several hundred possible investments and that it wants to analyze the risk-return-trade off for portfolios of 20 projects. How should it proce
Summary of conclusion regarding the ability of zip co : Zip plans to raise $400m for overseas expansion, Provide a summary of conclusion regarding ability of Zip Co to successfullyundertake future growth ambitions.
What is the minimum deposit necessary : You have a long position in one corn futures contract. Each futures contract calls for the delivery of 5,000 bushels of No. 2 corn. The initial margin was $2,50
Proportion of variation in xyz excess return : What proportion of variation in XYZ excess return is explained by variation in the market excess return? (You must show all necessary workings)
What consolidated balance sheet of ruth in the amount of : What consolidated balance sheet of Ruth and subsidiary displays goodwill in the amount of? As a result of the acquisition of Halcomb by Ruth.
Calculate the company ending fixed asset value : Calculate the company's ending fixed asset value. Show calculations in detail.
What is the equipment after-tax net salvage value : Allen Air Lines must liquidate some equipment that is being replaced. The equipment originally cost $13.5 million, of which 80% has been depreciated.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd