Homework Answers
Part 4.
Value of Total Contract = 1239 * 100
= 123900
Initial Margin to be deposited = 30% of 123900
= 37170
Part 5.
Since the future price increased no additional Margin has to be deposited. So, at the end it will still remain 37170.
Part 6.
Additional Margin = (1239 -1235) * 100 * 30%
= 120
Margin at the end of Day 2 = 37290
Part 7.
Additional Margin = (1235 - 1231) * 100 * 30%
= 120
Margin at the end of Day 3 = 37410
Add Answer to:
Intro The futures price per troy ounce of gold delivered in 3 months is as follows:...
Problem 16 Intro You are long 55 gold futures contracts. Gold: 100 troy oz.; $ per...
Problem 16 Intro You are long 55 gold futures contracts. Gold: 100 troy oz.; $ per troy oz. Open High Low Settle Change 1,400.37 1,401.71 1,399.95 1,400.32 1.98 | Attempt 5/10 for 10 pts. Part 1 What was your profit or loss over the day (in $)? No decimals Previous answers: 275; -275; 776; -2.75 Submit
] Question 4 (10 marks) Suppose the spot price of gold is $1,500 per troy ounce...
]
Question 4 (10 marks) Suppose the spot price of gold is $1,500 per troy ounce today. The futures price of gold for delivery in 1 year is $1,530 per troy ounce. Assume that the one-year gold futures contract is correctly priced and there are no storage and insurance costs. Also assume that the risk-free rate is compounded annually and you can borrow and lend money at the risk-free rate. a). What is the theoretical parity price of a two-year...
The December 2020 Gold Futures contract was priced at $1,500.00 (i.e., F0) per troy ounce on...
The December 2020 Gold Futures contract was priced at $1,500.00 (i.e., F0) per troy ounce on 3/16/2020. Each gold futures contract represents 100 troy ounces. The initial margin requirement (IMR) is $8,000 per contract and the maintenance margin requirement (MMR) is $6,000 per contract. Jennifer Shaw bought 1 December 2020 Gold futures contract at $1,500.00 on 3/16/2020; Pauline Woo sold 1 December 2020 Gold futures contract at $1,500.00 on 3/16/2020. Today (3/17/2020), the December 2020 Gold futures contract is priced...
18. You sell one December gold futures contract when the futures price is $1,010 per ounce....
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...
Suppose that you bought two one-year gold futures contracts when the one-year futures price of gold...
Suppose that you bought two one-year gold futures contracts when the one-year futures price of gold was US$1,340.30 per troy ounce. You then closed the position at the end of the sixth trading day. The initial margin requirement is US$5,940 per contract, and the maintenance margin requirement is US$5,400 per contract. One contract is for 100 troy ounces of gold. The daily prices on the intervening trading days are shown in the following table. Day Settlement Price 0 1340.30 1...
You are long 28 gold futures contracts, established at an initial settle price of $1,536 per...
You are long 28 gold futures contracts, established at an initial settle price of $1,536 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,525, $1,521, $1,531, and $1,541, respectively Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit...
You are long 20 gold futures contracts, established at an initial settle price of $1,512 per...
You are long 20 gold futures contracts, established at an initial settle price of $1,512 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,506, $1,502, $1,507, and $1,517, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit...
You are long 19 gold futures contracts, established at an initial settle price of $849 per...
You are long 19 gold futures contracts, established at an initial settle price of $849 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract, and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $838, $834, $844, and $854, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit...
Problem 14-12 Marking-to-Market (LO2, CFA2) You are long 24 gold futures contracts, established a...
Problem 14-12 Marking-to-Market (LO2, CFA2) You are long 24 gold futures contracts, established at an initial settle price of $1,524 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,518, $1,514, $1,519, and $1,529, respectively. Compute the balance in your margin account at the end of each of the four trading days,...
Question 4 (10 marks) Suppose the spot price of gold is $1,500 per troy ounce today....
Question 4 (10 marks) Suppose the spot price of gold is $1,500 per troy ounce today. The futures price of gold for delivery in 1 year is $1,530 per troy ounce. Assume that the one-year gold futures contract is correctly priced and there are no storage and insurance costs. Also assume that the risk-free rate is compounded annually and you can borrow and lend money at the risk-free rate. Part c) is not related to Parts a) – b). c)....
Problem 16 Intro You are long 55 gold futures contracts. Gold: 100 troy oz.; $ per troy oz. Open High Low Settle Change 1,400.37 1,401.71 1,399.95 1,400.32 1.98 | Attempt 5/10 for 10 pts. Part 1 What was your profit or loss over the day (in $)? No decimals Previous answers: 275; -275; 776; -2.75 Submit
]
Question 4 (10 marks) Suppose the spot price of gold is $1,500 per troy ounce today. The futures price of gold for delivery in 1 year is $1,530 per troy ounce. Assume that the one-year gold futures contract is correctly priced and there are no storage and insurance costs. Also assume that the risk-free rate is compounded annually and you can borrow and lend money at the risk-free rate. a). What is the theoretical parity price of a two-year...
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...
You are long 28 gold futures contracts, established at an initial settle price of $1,536 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,525, $1,521, $1,531, and $1,541, respectively Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit...
You are long 19 gold futures contracts, established at an initial settle price of $849 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract, and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $838, $834, $844, and $854, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit...
Problem 14-12 Marking-to-Market (LO2, CFA2) You are long 24 gold futures contracts, established at an initial settle price of $1,524 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,518, $1,514, $1,519, and $1,529, respectively. Compute the balance in your margin account at the end of each of the four trading days,...
Question 4 (10 marks) Suppose the spot price of gold is $1,500 per troy ounce today. The futures price of gold for delivery in 1 year is $1,530 per troy ounce. Assume that the one-year gold futures contract is correctly priced and there are no storage and insurance costs. Also assume that the risk-free rate is compounded annually and you can borrow and lend money at the risk-free rate. Part c) is not related to Parts a) – b). c)....
Most questions answered within 3 hours.
-
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 1 hour ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 1 hour ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 1 hour ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 2 hours ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 2 hours ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 2 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 6 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 6 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 6 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 7 hours ago -
When a metal rod is heated, not only its resistance but also its
length and cross‐sectional...
asked 7 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 7 hours ago