Question

Future contract

Maintenance margin call

0 0
Add a comment Improve this question Transcribed image text
Request Professional Answer

Request Answer!

We need at least 10 more requests to produce the answer.

0 / 10 have requested this problem solution

The more requests, the faster the answer.

Request! (Login Required)


All students who have requested the answer will be notified once they are available.
Know the answer?
Add Answer to:
Future contract
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Similar Homework Help Questions
  • 15.8. Bob takes a long position in one contract of S&P 500 futures. Each contract is...

    15.8. Bob takes a long position in one contract of S&P 500 futures. Each contract is for the delivery of 250 units of the index at a price of 1800 per unit. The initial margin is 10% of the notional value and the maintenance margin is 80% of the initial margin. Interest on the margin account is paid at an annual continuously compounded rate of 5%. The first mark-to-market occurs one week (7 days) after the sale of the contract....

  • Copper futures are written on 25,000 pounds per contract and prices are quoted in dollars per...

    Copper futures are written on 25,000 pounds per contract and prices are quoted in dollars per pound. The maintenance margin is $3100 per contract , and the initial margin is 110% of the maintenance margin. You take a short position in one April 2019 Copper futures contract at the end of the day on January 23 and fund your account with cash to meet the initial margin. Fill in the table below based on the price realizations. Date Futures Price...

  • Problem 2.2. A company has a short position in futures contract to sell 5,000 bushels of...

    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 you are a trader who has bought one July 2020 corn futures contract at a...

    Assume you are a trader who has bought one July 2020 corn futures contract at a price of US$4.05/bu. You deposit US$880 into your margin account, which the initial margin. The maintenance margin is US$800. Over the next several trading days in the table below, identify and quantify clearly any margin calls by calculating and reporting the daily balance. Margin Call? If Yes, how much? Day Closing Price US$/bu Action Balance Initial Margin = US$880 Maintenance Margin US$800 Buy July...

  • On day 1 an investor entered into a futures contract to buy £62,500 at $1.45/£1. The...

    On day 1 an investor entered into a futures contract to buy £62,500 at $1.45/£1. The initial performance bond was 2 percent of the USD contract value. The maintenance performance bond was 90 percent of the initial performance bond. Below what settle price will the investor receive a margin call? Multiple Choice $1.4239/£1 None of the options. $1.4210/£1 $1.4471/£1 $1.4720/£1

  • 2. What are the differences among a spot contract, a forward contract, and a futures contract?...

    2. What are the differences among a spot contract, a forward contract, and a futures contract? 4. What is the purpose of requiring a margin on a futures or option transaction? What is the difference between an initial margin and a maintenance margin? 8. What is an option? How does an option differ from a forward or futures contract? 13. What factors affect the value of an option? 15. What is a swap?

  • 1. If you buy 100 shares of a stock at $50 on 40% margin and it...

    1. If you buy 100 shares of a stock at $50 on 40% margin and it subsequently declines to > call? Assume the maintenance margin is 25%. (5) 30 on 40% margin and it subsequently declines to $36, what would be your margin

  • Consider an investor who buys a stock index futures contract on the MSCI Singapore Free Index...

    Consider an investor who buys a stock index futures contract on the MSCI Singapore Free Index at 250 on day 1. The size of each contract will be $200 multiplied by the MSCI Singapore Free Index Assume the initial margin and maintenance margin for the contract are $5,000 and $4,000 respectively. Record the following investor account marked to market. Day Settlement Price Profit/Loss Margin Balance Margin Call 1 250 2 252 3 246 4 244 (4) The current price of...

  • need help with questions 3,4,5,6 please You have purchased 500 shares of MSFT (Microsoft) at $100...

    need help with questions 3,4,5,6 please You have purchased 500 shares of MSFT (Microsoft) at $100 per share using the maximum percentage of borrowed (marained) funds per FRB Regulation T. The maintenance margin can Tevel on your brokerage account is 25%. When will you receive a margin call on your account 2. Relative to question 1. If the maintenance margin call level on your account was 35% rather than 25%, what would your new margin call level be? 3. Relative...

  • You have bought 500 shares of XYZ Corp. at $36.71 per share on 70% margin. The...

    You have bought 500 shares of XYZ Corp. at $36.71 per share on 70% margin. The maintenance margin is 40%. Next day, the price of the stock drops to $17.30 per share. if a margin call is triggered, calculate the value of the deposit required to service the margin call. If no margin call is issued, enter $0.00 as your answer. Thank you!

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
Active Questions
ADVERTISEMENT