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I NEED THE ASNWERS FOR TRADER B, NOT A PLEASE. Just the 2nd part Contract Size: 100 troy oz. Initial Margin: $5500 per contract Maintenance
I NEED THE ASNWERS FOR TRADER B, NOT A PLEASE.
Just the 2nd part
Contract Size: 100 troy oz.
Initial Margin: $5500 per contract
Maintenance margin: $4000 per contract
Minimum tick size: 10 cents/troy ounce ($10/contract)
*Information for trader B can be found in point 1.
FOR TRADER B
1) Complete the following table showing the open interest for the contract during July 6-8 Date Buyer SellerContracts PriceOpen Interest July 6 July 6 July 6 July 7 July 7 July 7 July 8 July 8 $1220.00 $1212.00 $1212.00 $1206.00 $1208.00 Settlement Price $1208.00 $1200.00 Settlement Price$1215.00 Settlement Price 2) Calculate the gains and losses for Trader A. Assume that at the time of each change in position, Trader A must bring the margin back to the initial amount. Also, if the margin account balance falls below the maintenance margin, trader A must bring the margin back to the initial amount. Compute the amount in Trader A's margin account at the end of each trading day. Will trader A get a margin call? If so, when, and how much additional margin must be postedStep by Step Solution
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