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Consider an investor who contacts his/her broker on June 5th to enter into short position on 3 December soybean futures contract. Each contract size is
Consider an investor who contacts his/her broker on June 5th to enter into short position on 3 December soybean futures contract. Each contract size is 50lbs. Initial margin requirement is $5000 per contract and maintenance margin requirement is $3750 per contract. Suppose that current futures price is $1250 per pound. Using the daily settlement process, please answer the questions #9 - #11. date futures price loss/gain Acct bal. (after adjusting margin call) Margin call 5-Jun $1,250 /lbs $1,240 /lbs 6-Jun $1,235 /lbs 7-Jun $1,215 /lbs 8-Jun $1,245 /lbs total cum.loss/gain= #2. How much is the total cumulative loss/gain for this account? This is a problem that has three questions. Therefore, solve three questions (from #9 - #11) using this problem's information. Consider an investor who contacts his/her broker on June 5th to enter into short position on 3 December soybean futures contract. Each contract size is 50lbs. Initial margin requirement is $5000 per contract and maintenance margin requirement is $3750 per contract. Suppose that current futures price is $1250 per pound. Using the daily settlement process, please answer the questions #9 - #11. date futures price loss/gain Acct bal. (after adjusting margin call) Margin call 5-Jun $1,250 /lbs $1,240 /lbs 6-Jun $1,235 /lbs 7-Jun $1,215 /lbs 8-Jun $1,245 /lbs total cum.loss/gain= #2. How much is the total cumulative loss/gain for this account? #2. total cumulative gain = + $750 #2. total cumulative loss = -$1500 #2. total cumulative gain = +1500 #2. total cumulative loss = -$750.
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