FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. [5 points] Danny entered into five lumber contracts. Each lumber futures contract is for 110,000 board feet. The contract requires an initial margin of

image text in transcribed
4. [5 points] Danny entered into five lumber contracts. Each lumber futures contract is for 110,000 board feet. The contract requires an initial margin of $5,400 per contract and a maintenance margin of $4,950 per contract. Prices are in US dollars per 1,000 board feet. Complete the following chart and the questions below: Settle Price Day 1 Price 783.9 Day Gain Cumulative Gain Margin Balance Margin Call 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 771.9 783.9 775.7 777.2 745.0 716.5 700.6 668.8 703.0 718.9 689.5 665.9 649.5 672.2 684.2 663.0 a. What is the amount of the initial margin for Danny's entire position? b. What is the amount of the maintenance margin for Danny's entire position? h

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

Step: 3

blur-text-image

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

Accounting, Representation And Responsibility

Accounting, Representation And Responsibility

Authors: Niels Joseph Lennon

1st Edition

0367540436, 9780367540432

More Books

Students also viewed these Accounting questions

Question

★★★★★
Now use the moment generating function from Exercise 43.1 to verify that, if X is Geometric with parameter p, then E(X2) = (2 - p)/p2. In Exercise 1 P(X = x) = px(x) = (1- p)x-lp For x = 1, 2, 3,...,...

Answered: 1 week ago

Question

★★★★★
Write a program that asks the user to enter a series of numbers separated by commas. Here is an example of valid input: 7,9,10,2,18,6 The program should calculate and display the sum of all the...

Answered: 1 week ago

Question

★★★★★
Twenty-five households are polled in a marketing survey, and Table 1.11 lists the num- bers of litres of milk purchased during a particular week. Construct a relative frequency histogram to describe...

Answered: 1 week ago

Question

★★★★★
See the following balance sheet for the town of Paris governmental funds. In addition, you learn from other records that the town has capital assets with a book value (net of depreciation) of $1,450...

Answered: 1 week ago

Question

★★★★★
8. Assume Model 2 with D1=$2 and r=10%. Calculate different P0 's with g=0%,1%, 2%,3%,4%,5%,6%,7%,8%, and 9%. Plot P0(=Y axis) against g in Excel. Comment. 9. Assume Model 2 with D1=$2 and g=5%....

Answered: 1 week ago

Question

★★★★★
Which of the following will increase the future value of an asset? a. The discount rate decreases b. The discount rate is compounded less frequently c. The asset matures later d. Interest is...

Answered: 1 week ago

Question

★★★★★
Parts arrive at a lathe at a rate of 20 every half hour. Each part must be processed on the lathe for 0.5 minutes. What is the utilization for the lathe?

Answered: 1 week ago

Question

★★★★★
Use Linux commands to complete the following task. a. Perform a system update using root privileges b. Create a folder in the user directory named MYFOLDER c. Create a file with the name INDEX d....

Answered: 1 week ago

Question

★★★★★
2. Suppose I have a class B ID: 189.126.0.0/24, and I want to create 6 new subnets. A.What is the new subnet mask? B.How many usable host IDs for each new subnet? C.List each network ID, the useable...

Answered: 1 week ago

Question

★★★★★
Prepare a cash budget for each of the six months ended 31 December 2021 (b) Prepare the forecast income statement for the six months ended 31 December 2021. (c) Explain THREE (3) purposes of...

Answered: 1 week ago

Question

★★★★★
Q5 24 Points Consider a finite one-period financial model with trading times {0, 1} and sample space = {w, w}. Let V1,..., V" denote securities whose payments at time 1 are given by V (wi)={ 1 i=j 0...

Answered: 1 week ago

Question

★★★★★
1 What are some of the drawbacks to project- based organising? Individuals in film increasingly work on short- term projects rather than in permanent employment arrangements. The film industry is...

Answered: 1 week ago

Question

★★★★★
3 When is it a good idea to use the internal supply of labour?

Answered: 1 week ago

Question

★★★★★
5 What are the main aims of talent management?

Answered: 1 week ago

Previous Question Next Question