Question
1. Garlic contract: DELIVERY OF KEJORA FRESH SIBERIAN HARDNECK GARLIC BULB 4800 COUNT TO OLIVE MILL ARIZONA AT $.27 PER BULB DISCOUNT due: first week
1. Garlic contract: DELIVERY OF KEJORA FRESH SIBERIAN HARDNECK GARLIC BULB 4800 COUNT TO OLIVE MILL ARIZONA AT $.27 PER BULB DISCOUNT
due: first week of March 2022
-Chicago Board of Trade imposes +/-10 cents per bulb price (movement) limit; initial margin of $700; maintenance margin of 450.
-March garlic contract sells at $2.47/bulb when you purchased a contract. Subsequent events follow:
---price of garlic futures falls to 2.44/bulb
---price of garlic futures falls further to 2.40/bulb
---price of garlic futures falls further to 2.38/bulb
---price of garlic futures rises to 2.44/bulb
how much is your overall gain (loss)?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Advanced Accounting
Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik
10th edition
0-07-794127-6, 978-0-07-79412, 978-0077431808
