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Need help w part a,b, and c. Kindly show the what would be the inputs in the calculator. thank you Consider the Mark-to-Market Settlements for
Need help w part a,b, and c. Kindly show the what would be the inputs in the calculator. thank you
Consider the Mark-to-Market Settlements for 1 gold futures contracts maturing in 5 months. Assume that the risk-free rate available to investors is 6% per annum with quarterly compounding and that no arbitrage relationship between spot and futures prices (Futures-Spot parity) with continuous compounding holds in all months. Also assume that the initial margin is $18,000 per contract, while the maintenance margin is $6000 per contract Futures Contr Price. act Spot Price End of Change in Size Mo End of Month Futures (ounc Buyer/Long Seller/Short nth Month(S) Price es) Position Position Contract Initial Initiated 0 1307.00 1339.84 100 Margin (b) (c) 1 1309.00 1335.25 100 (b) 2 1336.76 100 (b) (c) 3 1332.00 1345.29 100 (a) (c) (c) Monthly Adjustments 4 100 1325.00 (a) (b) (c) (c) Delivery 5 5 1321.00 100 Account Bal. Month 5 (c) For the questions below answers must contain at least three digits after the decimal point. a. In the table above, show your answers in the cells marked by a b. In the table above, show your answers in the cells marked by "B". c. In the table above, show your answers in the cells marked by "c"|| Consider the Mark-to-Market Settlements for 1 gold futures contracts maturing in 5 months. Assume that the risk-free rate available to investors is 6% per annum with quarterly compounding and that no arbitrage relationship between spot and futures prices (Futures-Spot parity) with continuous compounding holds in all months. Also assume that the initial margin is $18,000 per contract, while the maintenance margin is $6000 per contract Futures Contr Price. act Spot Price End of Change in Size Mo End of Month Futures (ounc Buyer/Long Seller/Short nth Month(S) Price es) Position Position Contract Initial Initiated 0 1307.00 1339.84 100 Margin (b) (c) 1 1309.00 1335.25 100 (b) 2 1336.76 100 (b) (c) 3 1332.00 1345.29 100 (a) (c) (c) Monthly Adjustments 4 100 1325.00 (a) (b) (c) (c) Delivery 5 5 1321.00 100 Account Bal. Month 5 (c) For the questions below answers must contain at least three digits after the decimal point. a. In the table above, show your answers in the cells marked by a b. In the table above, show your answers in the cells marked by "B". c. In the table above, show your answers in the cells marked by "c"||Step by Step Solution
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