Question
Answer QUESTION 2a ONLY AND SHOW FULL WORK AND EXPLANATION!! 2. You are provided with the following information on prices in some commodity futures. Suppose
Answer QUESTION "2a" ONLY AND SHOWFULL WORKAND EXPLANATION!!
2. You are provided with the following information on prices in some commodity futures. Suppose that you have a long position on this futures contract. The maturity month of the futures contract is on March, 2019. Let the initial spot price be $18.43 per unit when you started the futures position, and each futures contact has 1000 units. Suppose the initial margin for the futures position is 32% of the initial contract value, the maintenance margin is $5,898. Let the brokerage fee be negligible and you can close out the futures position before its maturity month.
a) How much have you deposited in all together in maintaining your futures position until 10/16? Show this in details on Excel spreadsheet.
DateFuture PriceSpot Price
7/1318.9818.43
7/1419.1719.46
7/1719.5419.72
7/2020.220.05
7/2120.8822.09
7/2522.522.01
8/522.2121.92
8/72323.16
8/1023.1523.04
8/1223.2523.63
8/1522.6422.61
8/1823.1822.89
8/1923.5723.78
8/2323.9124.56
9/122.8323.72
9/321.6722.36
9/621.3322.01
9/821.6122.31
9/1222.4223.24
9/2122.3523.03
9/2222.8422.19
10/523.5223.10
10/923.7824.03
10/1623.3823.05
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started