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A Brazilian Real futures contract has an initial performance bond of $1,430 and maintenance margin (performance...
The initial margin (performance bond) for each wheat futures contract is $1,650. assume you went long one wheat futures contract at the above price and posted margin with your broker, if the next day wheat futures closed at “470” how much money would be left in your margin account?
You purchase a Treasury-bond futures contract with an initial margin requirement of 15% and a futures price of $115,850. The contract is traded on a $100,000 underlying par value bond. If the futures price falls to $108,600, what will be the percentage loss on your position? (Input the value as positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) Total percentage loss %
You buy one December futures contracts when the futures price is $1,010 per unit. Each contract is on 100 units and the initial margin per contract that you provide is $3,000. The maintenance margin per contract is $2,000. During the next day the futures price falls to $1,004 per unit. What is the balance of your margin account at the end of the day? $3,200 $3,400 $3,600 $2,400
Suppose the initial margin on heating oil futures is $8,500, the maintenance margin is $7,000 per contract, and you establish a long position of 16 contracts today, where each contract represents 42,000 gallons. Tomorrow, the contract settles down $0.08 from the previous day's price. What is the maximum price decline on the contract that you can sustain without getting a margin call? (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Round your answer...
18. You sell one December gold futures contract when the futures price is $1,010 per ounce. The contract is on 100 ounces of gold and the initial margin per contract that you provide is $2,000. The maintenance margin per contract is $1,500. During the next day the futures price rises to $1,012 per ounce. What is the balance of your margin account at the end of the day? A. $1,700 B. $2,200 C. $1,300 D. $1,800 19. A hedger takes...
Problem 2.2. A company has a short position in futures contract to sell 5,000 bushels of wheat. The company had entered into the contract when the futures price was 225 cents per bushel. The initial margin is $3,000 and the maintenance margin is $2,000. The current futures price is 250 cents per bushel and the margin account balance is $3,250. (a) Determine the net margin deposits to or margin withdrawals from the margin account so far. (6) What price change...
Assume that an investor has a long position in standard CME EUR futures contract (EUR 125,000) and that today’s settlement price is $1.1678 per euro. If the balance in the investor’s performance bond account is currently $2,500 and according to his/her broker’s margin rules new money must be deposited if the balance falls to $1,900, at what EUR futures settlement prices would his/her broker demand additional money be deposited?
1. Consider the futures contract to buy/sell December gold for $500 per ounce on the New York Commodity Exchange (CMX). The contract size is 100 ounces. The initial margin is S3,000, and the maintenance margin is $1,500. 1.a. Suppose that you enter into a long futures contract to buy December for $500 per ounce on the CMX What change in the futures price will lead to a margin call? If you enter a short futures contract, what futures price will...
You own a bond portfolio and decide to hedge using futures on 10 year Treasury notes. The bond portfolio has a PVBP = $764.9 and the futures contract has a PVBP = $193.1. What is the hedge ratio needed? Enter your result as a positive number with one decimal place (do not round to the nearest integer).
1. Which of the following statements is LEAST LIKELY to be CORRECT? A. Price limits on futures contract refer to the imposed limits on the daily price change. B. The clearinghouse, in U.S. futures markets acts as the counterparty in futures contracts and guarantees performance of futures contract obligations. C. If the margin account balance falls below the maintenance margin level, additional deposit is required to bring the balance up to the maintenance margin level. 2. What discount rate should...