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

Question

1 Approved Answer

A trader shorts 3 wheat futures contracts (5000 bushels per contract) at $4.50 per bushel. Each contract has an initial margin of $1500 and maintenance

A trader shorts 3 wheat futures contracts (5000 bushels per contract) at $4.50 per bushel. Each contract has an initial margin of $1500 and maintenance margin of $1000. What is the first price that would lead to a margin call?

$4.61 per bushel

$ 4.11 per bushel

$ 4.33 per bushel

$ 4.39 per bushel

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

Financial Management Theory And Practice

Financial Management Theory And Practice

Authors: Eugene F Brigham, Michael C Ehrhardt

11th Edition

0324259689, 9780324259681

More Books

Students also viewed these Finance questions

Question

★★★★★
The commercial banking industry in Canada is less competitive than the commercial banking industry in the United Stated because in Canada only a few large banks dominate the industry, while in the...

Answered: 1 week ago

Question

★★★★★
(LO 10-4) Scatter plots are more meaningful if they include a . a. time series prediction b. box plot c. trend line d. categorical variable

Answered: 1 week ago

Question

★★★★★
=+b) In which application is a larger length used?

Answered: 1 week ago

Question

★★★★★
Mike Moore's microbrewery is considering production of a new ale called Mike's Honey Harvest Brew. To produce this new offering he is considering two independent projects. Each of these projects has...

Answered: 1 week ago

Question

★★★★★
Please help me solve this problem and explain (i am new to chem and unable to understand this problem) Four research teams measured the density of a new alloy, and what each team wrote in its team...

Answered: 1 week ago

Question

★★★★★
At the beginning of 2014, Hardin Company had 240,000 shares of $10 par common stock outstanding. During the year, it engaged in the following transactions related to its common stock: March 1 Issued...

Answered: 1 week ago

Question

★★★★★
Canada Importers is a Canadian firm based out of Mississauga Ontario. It was founded in 1979 and imports many different types of products. The company is looking to expand and has found that there is...

Answered: 1 week ago

Question

★★★★★
4. The data below pertains to the earnings of Juan Manuel for the week ended June 15, 2020: 3 points Hours and rate Earnings to date Overtime rate 42 hours worked at P40/hr P14.00 1 and times the...

Answered: 1 week ago

Question

★★★★★
Give the assumption or principle that would have been violated if the following entries or information had not been given: 1 . A owner of 3 different businesses wants to combine all of them into one...

Answered: 1 week ago

Question

★★★★★
huck and his employees have discussed redesigning the process to improve efficiency. Suppose they can increase the rate to 320 boxes per day. What will be their new productivity

Answered: 1 week ago

Question

★★★★★
Free-Response Questions 1. Suppose there are 100 residents on the island of Sunshine. Whenever someone purchases a palm tree to plant on the island, everyone on the island receives the same benefits...

Answered: 1 week ago

Question

★★★★★
Explain the 3 key issues that should be focused on during program design.

Answered: 1 week ago

Question

★★★★★
Outline the steps in the instructional systems design approach (ADDIE model) to training and development.

Answered: 1 week ago

Question

★★★★★
Identify the various sources of information used for selection decisions.

Answered: 1 week ago

Previous Question Next Question