What will be the investors percentage return

Assignment Help Financial Accounting
Reference no: EM13839687

The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently 1,200. Each contract has a multiplier of $250. How much margin must be put up for each contract sold? If the futures price falls by 1% to 1,188, what will happen to the margin account of an investor who holds one contract? What will be the investor’s percentage return based on the amount put up as margin? 

Reference no: EM13839687

Questions Cloud

What type of interest rate swap would be appropriate : What type of interest rate swap would be appropriate for a speculator who believes interest rates soon will fall?
Duration and the time to maturity : a. Calculate the duration for a bond that has a maturity of four years, three years, and two years. b. What conclusions can you reach about the relationship between duration and the time to maturity? Plot the relationship.
Virtually all of the sales associates at y&r : What is the 4/5ths or 80% rule, and how does it help determine if discrimination exists? Also, what does this piece of the scenario have to do with this rule? T"he company advertises its retail sales associate positions widely and hires from all raci..
Find the instantaneous acceleration of the mass : Find the instantaneous acceleration of the mass
What will be the investors percentage return : The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently 1,200. Each contract has a multiplier of $250. How much margin must be put up for each contract sold? If the futures price falls by 1% to 1,188, what will..
Discuss the issue of genetic testing and screening : Discuss the issue of genetic testing and screening. What are the benefits and the drawbacks of genetic testing? Specifically, what were they for Reiger
What constraints are there on an economys production : Why might you suspect that the economy might not be able to produce all the schools and beds it wants - What constraints are there on an economys production?
Net present value of the decision : If the company pays tax at a rate of 35% and the opportunity cost of capital is 15%, what is the net present value of the decision to produce the chains in-house instead of purchasing them from the supplier?
Find the cash flow from the mark to market : Find the cash flow from the mark-to-market proceeds on the contract. Assume that the parity condition always holds exactly. Find the holding-period return if the initial margin on the contract is $10,000.

Reviews

Write a Review

Financial Accounting Questions & Answers

  How curriculum taught in grade school through high school

Do you think the curriculum taught in grade school through high school is based on demand? The demand in quantity of educated healthcare professionals and IT personnel in increasing, so it is up to the schools to supply those workers. What do yo..

  Reclassifying the investments have on the current ratio

Ross’s Lipstick Company’s long-term debt agreements make certain demands on the business. For example, Ross may not purchase treasury stock in excess of the balance of retained earnings. What effect will reclassifying the investments have on the curr..

  Rationale for eliminating gift taxes

From your reading and research this week, you will learn that estate taxes are complex and require a lot of skill to navigate for complex estates. Take a position on the fairness of the current estate tax laws and recommend changes you would propose ..

  Balance in the capital in excess of par account

the shared outstanding and the balance in the Capital in Excess of par account

  Financial analysis key concept

Financial analysis, key concept A perplexing issue, particularly for many human resource management and marketing professionals, is the absence of a valuation in the traditional financial statements relating to human capital and other internally gene..

  Actual manucatoring overhead costs incurred in a process

What would be included in the entry to record actual Manucatoring overhead costs incurred in a process department?

  What is the most assembly division would be willing to pay

The Assembly Division of the same company needs a part that is just like Product A. The Assembly Division can choose whether to buy Product A from an outside supplier for $14.15 or buy it internally from the Parts Division.  and evaluate the most ..

  A company made the subsequent merchandise purchases and

a company made the subsequent merchandise purchases and sales during the month of maymay 1 purchased 380 units at 15

  Considering the purchase of equipment

Denver Company is considering the purchase of equipment that would cost $40,000 and offer annual cash of $ 10,500 over its useful life of 5 years. Assuming a required rate of return of 8 % calculate the net present value. Would you recommend that Den..

  Prepare summary journal entries related to the sale

At the beginning of 2012, EZ Tech Company’s Accounts Receivable balance was $140,000, and the balance in Allowance for Doubtful Accounts was $2,350 (Cr.). EZ Tech’s sales in 2012 were $1,050,000, 80% of which were on credit.

  Multiple choice questions on basic accounting

multiple choice questions on basic accounting principle.1.nbspthe income summary account is also called a.nbspthe

  The sales mix were to shift toward product

If the sales mix were to shift toward Product L40O with total dollar sales remaining constant, the overall break-even point for the entire company:

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