Question
Andy has just purchased 5 contracts of May cotton on the CBT. These are 50,000 pound contracts. The initial deposit is $3,300 per contract with
Andy has just purchased 5 contracts of May cotton on the CBT. These are 50,000 pound contracts. The initial deposit is $3,300 per contract with a maintenance margin of $3,000.
a. What is Andy's total initial margin?
b. Calculate his return on invested capital if the purchase price is $1.17 per pound and the sale price is $1.19 per pound.
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The Commercial Aircraft Finance Handbook
Authors: Ronald Scheinberg
2nd Edition
1138558990, 978-1138558991
