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Company Monash enters into two short futures contracts to sell pork belly. Each futures contract contains 46571 kilos of pork belly and the current futures
Company Monash enters into two short futures contracts to sell pork belly. Each futures contract contains 46571 kilos of pork belly and the current futures price is 1.5 per kilo. The initial margin is $5,000 per contract and the maintenance margin is $4,000 per contact. Company Monash will receive a margin call if the futures price is above a certain level. How much is this level? Note: In your answer, (1) only input numerical value with 2 decimal points, and (2) do not input unit or symbol, such as $", km, and %. For example, if your answer is 22.20 dollar, present your answer as 22.20, but not $22.20. On May 1, the share price of Company Monash is $60 and its December futures price is $53.2. On July 1 the share price is changed to $64 and its December futures price is changed to $62.2. An investor entered into futures contracts on May 1 to hedge his/her purchase of the share of Company Monash on July 1. The investor closed out his/her position on July 1. What is the effective price (after taking account of hedging) paid by the investor? Note: In your answer, (1) only input numerical value with 2 decimal points, and (2) do not input unit or symbol, such as "$", "km, and %. For example, if your answer is 22.20 dollar, present your answer as 22.20, but not $22.20
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