Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

On Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and

On Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer the following questions. Day Settlement price Monday $97,406.25 Tuesday $98,000.00 Wednesday $100,000.00 At the close of day on Tuesday your cumulative rate of return on your investment is __________.

A) 16.21%

B) 5.79%

C) 5.79%

D) 16.21%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Health Care Finance Basic Tools For Nonfinancial Managers

Authors: Judith J. Baker, R.W. Baker

3rd Edition

076377894X, 978-0763778941

More Books

Students also viewed these Finance questions

Question

Draw a schematic diagram of I.C. engines and name the parts.

Answered: 1 week ago