How does the concept of margin on a commodities contract differ from that of margin on a

Question:

How does the concept of margin on a commodities contract differ from that of margin on a stock purchase?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals of Investment Management

ISBN: 978-0078034626

10th edition

Authors: Geoffrey Hirt, Stanley Block

See More Books

Question Posted: Sep 21, 2015 05:37 AM

See More Questions

Indicate some factors that might influence the price of wheat in the commodities market.
An investor purchases a 25,000-pound contract for copper at $2.10 per pound with an initial margin requirement of 6 percent. The price goes down to $2.06 after a year. What are the dollar and...
You purchase a futures contract in euros for $170,000. The trading unit is 125,000 euros. a. What is the ratio of cents to euros in this contract? (Divide the dollar contract size by the size of the...
1. A man digs 3 cubic feet per minute. Express the digging rate in cubic meters per hour. = ( 0 . 3 0 5 f t A ) 0 . 3 4 B ) 2 . 3 4 C ) 3 6 . 2 D ) 1 6 7 . 4 E ) 6 4 0 0 2. The x -...
Each of the following situations relates to the recognition of revenue: a. A store sells a gift card in December which will be given as a Christmas present. The card is not redeemed until January. b....
To what extent may parents be held liable for the acts of their minor children? Be complete and specific.
A work center has the following open and planned orders for week 4. Calculate the total standard time required (load). LO.1
Bridget Krumb, Inc., purchased inventory costing $125,000 and sold 80% of the goods for $190,000. All purchases and sales were on account. Krumb later collected 25% of the accounts receivable. 1....
Kuhn does not have any retained earnings available to finance this project, so the firm will have to issue new common stock to help fund it. Its common stock is currently selling for $22.35 per...
The Spartans Company has the capacity to produce 369,000 t-shirts per year and is currently selling 344,000 t-shirts for $9 each. The variable cost associated with each t-shirt is $7.75. A retailer...
What group has primary regulatory responsibility for the activities of the commodity exchanges?
You purchase a 5,000-bushel contract for corn at $1.90 per bushel ($9,500 total). The initial margin requirement is 7 percent. The price goes up to $1.98 in one month. What is your percentage profit...
Prove parts (b) and (c) of Theorem 16.5. f(an) = [f(a)n for all a G and all n Z.
STAR Co. provides paper to smaller companies whose volumes are not large enough to warrant dealing directly with the paper mill. STAR receives 100-feet-wide paper rolls from the mill and cuts the...
2. Define management.3) Describe who managers are and where they work.4) Describe what managers do.5) Describe the factors that are reshaping and redefiningmanagement.6) Explain what the external...
E 1 0 . 1 9 ( LO 3 ) ( Depletion Computations - Timber ) Stanislaw Timber Company owns 9 , 0 0 0 acres of timberland purchased in 2 0 1 4 at a cost of $ 1 , 4 0 0 per acre. At the time of purchase,...
Question 01 You were hired as an engineer to evaluate some soil characteristics and conditions to which it is subjected. To do this, you obtained the information presented in the stratified soil...
1 According to Strudler, the reason lying is worse than misleading is thatl ying damages trust whereas misleading does not damage any trust. According to Strudler, the reason lying is worse than...
What happens if you specify an invalid format string?
TRUE-FALSE QUESTIONS 1. In terms of preliminary analytical procedures, assume that the company has introduced a new product with a low price point and significant customer demand. The auditor would...
What is the objective of a general and administrative expenses budget?
Refer to the Smith Valley Snow Park Lodge expansion project in S21-2. Requirement 1. Compute the payback period for the expansion project.
Refer to the Smith Valley Snow Park Lodge expansion project in S21-2. Requirement 1. Calculate the ROR.
Refer to the Smith Valley Snow Park Lodge expansion project in S21-2. Assume the expansion has zero residual value. Requirements 1. Will the payback period change? Explain your answer and recalculate...
Los siguientes datos corresponden a las operaciones de Turk Company el ao pasado: Ventas $ 900 000 Utilidad operativa neta $ 36 000 Margen de contribucin $ 150 000 Activos operativos promedio $ 180...
Problem 16-16 Tax Shields (LO2) River Cruises is all-equity-financed with 53,000 shares. It now proposes to issue $280,000 of debt at an interest rate of 12% and to use the proceeds to repurchase...
In a process costing system, companies use predetermined overhead rates to apply overhead

How does the concept of margin on a commodities contract differ from that of margin on a

Question:

Step by Step Answer:

Margin requirements on commodities contracts 210 percent are much lowe...View the full answer

Fundamentals of Investment Management

Students also viewed these Accounting questions