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Now, the farmer trusts you and allowed another trade. This time, you decide to go long on the same contract. You buy 10 contracts at

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Now, the farmer trusts you and allowed another trade. This time, you decide to go long on the same contract. You buy 10 contracts at 4.27 $/bu. This is Day 1. The initial margin (performance bond) is $730 per contract, and the maintenance level is $650 per contract. Each contract has 5,000 underlying bushels. You offset your position on Day 7. 10) (10 pts.) Calculate your final cumulative gains using the table below: Trade price 4.27 Settlement price Cumulative gain Margin account balance Margin call Daily gain Day 1 1 2 4.21 4.23 4.25 3 4 4.22 5 4.28 6 4.25 7 4.29 Now, the farmer trusts you and allowed another trade. This time, you decide to go long on the same contract. You buy 10 contracts at 4.27 $/bu. This is Day 1. The initial margin (performance bond) is $730 per contract, and the maintenance level is $650 per contract. Each contract has 5,000 underlying bushels. You offset your position on Day 7. 10) (10 pts.) Calculate your final cumulative gains using the table below: Trade price 4.27 Settlement price Cumulative gain Margin account balance Margin call Daily gain Day 1 1 2 4.21 4.23 4.25 3 4 4.22 5 4.28 6 4.25 7 4.29

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