Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume that on April 27th of this year you were watching copper prices. Given their trajectory, you felt they were going to decline. So you

Assume that on April 27th of this year you were watching copper prices. Given their trajectory, you felt they were going to decline. So you went short one contract at a price of 448.80 (this is in cents and 100ths of a cent). The initial margin is $6,050. The maintenance margin is $5,500. The minimum price movement is .05 cents (.0005 dollars) which equals $12.50. What date will you receive a margin call?

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

Forest Resource Economics And Finance

Authors: W. David Klemperer

1st Edition

0974021105, 978-0974021102

More Books

Students also viewed these Finance questions