Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

1.You took a short position in 20 September Crude Palm Oil (CPO) Futures contracts. Each contract is to deliver 25 metric tons of crude palm

1.You took a short position in 20 September Crude Palm Oil (CPO) Futures contracts. Each contract is to deliver 25 metric tons of crude palm oil. As you entered the CPO Futures today the September CPO futures is trading at RM 2,200 per metric tone. You posted an initial margin of RM45,000 and the maintenance margin is RM33,000. On the 7th trading day the CPO price had increased to RM 2,230 per metric tone which led to a margin call of RM15,000. On the 23rd trading day the September CPO Futures were trading at RM 2,180 per metric ton and you decided to close out your position. The one round total brokerage fee is RM620. Calculate your profit or loss in this September CPO Futures trading?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Financial Reporting Standards An Introduction

Authors: Belverd E. Needles, Marian Powers

3rd Edition

1133187943, 978-1133187943

More Books

Students also viewed these Finance questions

Question

=+1. Are the two suggested pathways to growth independent?

Answered: 1 week ago