Question
4. Comparing forward and futures exchange contracts, we can say that A. delivery of the underlying asset is seldom made in futures contracts. B. delivery
4. Comparing "forward" and "futures" exchange contracts, we can say that
A. delivery of the underlying asset is seldom made in futures contracts.
B. delivery of the underlying asset is usually made in forward contracts
. C. delivery of the underlying asset is seldom made in either contractthey are typically cash settled at maturity.
D. both a) and b) E. both a) and c)
5. Yesterday, you entered into a futures contract to buy 62,500 at $1.50 per . Your initial performance bond is $1,500 and your maintenance level is $500. At what settlement price will you get a demand for additional funds to be posted?
A. $1.5160 per
. B. $1.208 per .
C. $1.1920 per .
D. $1.4840 per .
6. Yesterday, you entered into a futures contract to sell 62,500 at $1.50 per . Your initial performance bond is $1,500 and your maintenance level is $500. At what settlement price will you get a demand for additional funds to be posted?
A. $1.5160 per .
B. $1.208 per .
C. $1.1920 per .
D. $1.1840 per .
7. Yesterday, you entered into a futures contract to buy 62,500 at $1.50/. Your initial margin was $3,750. Your maintenance margin is $2,000 (meaning that your broker leaves you alone until your account balance falls to $2,000). At what settlement price do you get a margin call?
A. $1.4720/
B. $1.5280/
C. $1.500/
D. None of the above 3
8. Yesterday, you entered into a futures contract to sell 62,500 at $1.50/. Your initial margin was $3,750. Your maintenance margin is $2,000 (meaning that your broker leaves you alone until your account balance falls to $2,000). At what settlement price (use 4 decimal places) do you get a margin call?
A. $1.4720/
B. $1.5280/
C. $1.500/
D. None of the above
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