Note accounts for each trader listed in these trades and the exchange

Show balances in margins, profits, losses and payments to and from exchange for each date for each example given.

Note Locked in Losses and Profits and amounts paid when commodity is delivered

or both long and short have been assigned to the same agent.

Exchange Rules: margin $=5\%$ of value of contract plus any losses. When profits are locked in Exchange pays them.

When losses are locked in Exchange collects them $($less margin$).$ Exchange buys and sells grain at contracted prices.

Margin account is not reduced unless account settled. Then it is paid out like a deposit.

Trade $1$

Jan. $15$ Farmer has $200$ ths to sell signs shorts for $200$ tonnes $(10$ cts $)$ at $$\frac{500}{t}n$ for May delivery posts Speculator A takes long position $(200$tns$)$at $$\frac{500}{?}$ tn also posts $$5000$

Mar. $1$ Market rises to $$\frac{514}{?}$ tn$.$ Farmer get a margin call. Spec A short for $200$tns at $$514$ to capture gains and gets margin. Speculator B takes Long position on $200$ tns at $$514.$ Pays margin on $200$tn at $$514.$

Apr. $15$ Market falls to $$510.$Farmer $-$ wants to capture gains from Mar. and decides not to deliver canola. Takes long for $200$tn at $$510.$ Locks in loss and gets margin back. Speculator B $-$ wants to limits loss and does not want to take delivery of canola.

Decides to take short for $$510(200$tn$)$ and pays losses from margin accont.

Trade $2$

Jan. $15$ Farmer has $200$ tns signs shorts for $200$ tonnes $(10$contracts$)$ at $$\frac{500}{?}$ tn for May delivery posts margin of $$5000.$ Speculator A Takes long position $(200$tns$)$at $$\frac{500}{?}$ th also posts $$5000$

Mar. $1$ Market rises to $$\frac{514}{?}$ tn$.$ Farmer gets a margin call.

Apr. $15$ Market falls to $$511.$

Speculator A $-$ wants to capture gains from Jan. and does not

want to take delivery of canola. Takes short for $200$tn at $$511.$

Crusher wants to take delivery canola. Takes long for $200$tn at $$511$ and pays margin.

May. $1$ Farmer delivers on contract is paid $$500$ on $200$ tns$.$ Plus Margin.

Crusher takes delivery pays $$511$ on $200$tns$.$ Less Margin