Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

9. Your futures account had equity of $20,000.00 at the start. Given the following positions, what is the account's CURRENT equity balance? The current

image text in transcribed

9. Your futures account had equity of $20,000.00 at the start. Given the following positions, what is the account's CURRENT equity balance? The current equity balance is $23,852.80 POSITIONS QTY Cost Price Initial Equity Sep Wheat 5 572'0 559'2 $6,875.00 Dec Gold 1 $1,554.70 $1,666.50 $5,500.00 Dec Cocoa 2 $2,526.00 $2,756.00 $4,180.00 Cash $3,445.00 TOTAL $20,000.00 10. Note the following contract specifications: CONTRACT UNIT Wheat 5,000 bu QUOTE UNITS c/bushel INITIAL MAINT TIC SIZE MOS. MGN MGN Mar, May, Jul, $0.01 $1,375 $1,250 Sep, Dec Gold 1,000 troy oz $1.00/troy oz $0.10 Feb-Apr, Jun, $5,500 $5,000 Aug, Dec Mar, May, Jul, 10 m tons $/ton $1.00 $2,090 $1,900 Sep, Dec Assuming the initial equity and contract positions from the previous problem, what would the account value be if EACH position DECLINED 2.5% (round price to the nearest tic)?

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

Intermediate Financial Management

Authors: Brigham, Daves

10th Edition

978-1439051764, 1111783659, 9780324594690, 1439051763, 9781111783655, 324594690, 978-1111021573

More Books

Students also viewed these Finance questions

Question

Identify the four elements of the marketing mix.

Answered: 1 week ago