Question
On August 6, you go long one IMM yen futures contract at an opening price of $0.00812 with a margin account of $4,590 and a
On August 6, you go long one IMM yen futures contract at an opening price of $0.00812 with a margin account of $4,590 and a maintenance account of $3,400. The settlement prices for August 6, 7, and 8 are, $0.00894, $0.00845, and $0.00791and, respectively. On August 9, you close out the contract at a price of $0.00857. Your round-trip commission is $61.45.The size of one yen futures contract is 12,500,000 . a. Calculate the daily cash flows on your account. Be sure to take into account your required margin and any margin calls. b. What is your cash balance with your broker on the morning of August 10? c. What is your overall gain/loss at the end of the day on August 9?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started