Loss incurred in Day 3 of trading = 5,000 bushels ✕ 3 ✕ $0.01 = $150...
Loss incurred in Day 3 of trading = 5,000 bushels ✕ 3 ✕ $0.01
= $150
Cumulative Profits remaining after loss incurred
= Profits from day 2 - Loss incurred in Day 3
= $450 - $150
= $300
Amount in margin account balance at the end of Day 3 trading
= Value remaining after loss incurred + Initial Margin
= $300 + $450
= $750
The margin account balance at the end of Day 3 would be $750.
Question: Explain the components making up this amount, $750.
Homework Answers
Initial Margin = $ 450
Trading profit after first day = $ 200
Trading profit after second day= $250
Total profit after second day = $450
Trading loss after 3 day = $150
Net profit after 3rd loss= 450-150 =$300
Total amount with investor is =Initial Margin+ Net profit= 450+300 =&750
Add Answer to:
Loss incurred in Day 3 of trading = 5,000 bushels ✕ 3 ✕
$0.01
= $150...
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