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Margin Math Calculate the profit or loss for each trade. Determine if there will be a margin call and what the account balance would be
Margin Math Calculate the profit or loss for each trade. Determine if there will be a margin call and what the account balance would be after each offsetting trade. Maintenance margin = $80,000 (at the end of each day, you are required to have $80,000 in your account) Profit/Loss Margin Call Account Balance $100,000 400 x 15 =6 Buy 15 Live Cattle contract @ $117.600 Buy 10 Lean Hog contract @ $99.20 Buy 15 Lean Hog contract @ $98.00 Sell 10 Corn contracts @4.7575 Sell 20 Corn contracts @ $4.7500 Buy 20 Soybean contracts @ $14.9325 Sell 15 Soybean Meal contracts @ $398.0 Sell 12 Live Cattle contracts @ $115.000 Buy 13 Lean Hog contracts @ $95.000 Sold 20 wheat contracts @ $6.8075 Sell 15 Live Cattle contract @ $117.200 Sell 10 Lean Hog contract @ $98.50 Sell 15 Lean Hog contract @ $97.90 Buy 10 Corn contracts @ $4.7500 Buy 20 corn contracts @ $4.7150 Sell 20 Soybean contracts @ $14.8325 Buy 15 Soybean Meal contracts @ $402.1 Buy 12 Live Cattle contracts @ $120.500 Sold 13 Lean Hog contracts @ $102.550 Bought 20 wheat contracts @ $6.6225 At the completion of trading, did the speculator make money or lose money? How much
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