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Assume another speculator did another trade on the same day (July 29). Please calculate the margin balance. Show when (1) margin calls would be necessary
Assume another speculator did another trade on the same day (July 29). Please calculate the margin balance. Show when (1) margin calls would be necessary and their amount. (1) The second speculator puts in an order to go short a 5,000 bushel contract of December corn futures at $3.50, and the order to go short at $3.50 is filled on July 2 (2) The second speculator puts in a market order to go long the same December com futures on July 24, and the order is filled at $3.95 Price Date Margin Action Balance (S) (S per bu.) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 18-Jul 19-Jul 20-Jul 23-Jul 24-Jul $3.50 $3.45 Holiday $3.33 $3.26 $3.30 $3.35 $3.40 $3.20 $3.10 $3.18 $3.35 $3.42 $3.56 $3.67 $3.80 $3.95 To make sure that you get the right answer. Please use two different ways to answer the following question: (I) Calculate his gain/loss by using his margin action and account balance (2) Calculate his gain/loss by looking at the corn prices. Assume another speculator did another trade on the same day (July 29). Please calculate the margin balance. Show when (1) margin calls would be necessary and their amount. (1) The second speculator puts in an order to go short a 5,000 bushel contract of December corn futures at $3.50, and the order to go short at $3.50 is filled on July 2 (2) The second speculator puts in a market order to go long the same December com futures on July 24, and the order is filled at $3.95 Price Date Margin Action Balance (S) (S per bu.) 2-Jul 3-Jul 4-Jul 5-Jul 6-Jul 9-Jul 10-Jul 11-Jul 12-Jul 13-Jul 16-Jul 17-Jul 18-Jul 19-Jul 20-Jul 23-Jul 24-Jul $3.50 $3.45 Holiday $3.33 $3.26 $3.30 $3.35 $3.40 $3.20 $3.10 $3.18 $3.35 $3.42 $3.56 $3.67 $3.80 $3.95 To make sure that you get the right answer. Please use two different ways to answer the following question: (I) Calculate his gain/loss by using his margin action and account balance (2) Calculate his gain/loss by looking at the corn prices
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