Question
If investor sold seven contracts of June, 2012 corn. The price per bushel was $1.64, and each contract was for 5000 bushels.The initial margin deposit
If investor sold seven contracts of June, 2012 corn. The price per bushel was $1.64, and each contract was for 5000 bushels.The initial margin deposit is $2000 per contract with the maintenance margin at $1250.
i. How to I figure out the deposit on the investment?
ii. If the prices of the futures on the four days following the short sales were 1.60, 1.66, 1.70, and 1.75.
I need help calculating the current balance on each of the next four days.
iii. if after the 5th day the position is closed out what is the dollar loss/gain percentage and dollar amount
iv) suppose, the investor kept her position, and the futures price on the sixth day was 1.80, would the investor face a margin call? if so how much would she need to put up?
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