Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Assume an investor takes a long position in 2 September KLSE CI futures contract on 17th July. The futures contract price is RM1613.00 The initial
Assume an investor takes a long position in 2 September KLSE CI futures contract on 17th July. The futures contract price is RM1613.00 The initial margin and maintenance margin are RM6,000/contract and RM4,000.00/contract respectively. The trader closes his position on the fifth day. The futures settlement prices during those five days are: Day 1 RM1611.00 Day 2 RM1615.00 Day 3 RM1620.00 Day 4 RM1610.00 Day 5 RM1608.00 The contract size is RM50/contract. a. Determine the trader's total gains or losses. (12 marks) b. How much does the trader pay (if any) for "margin call" ? (6 marks) Show all workings. Attachment may be required
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