Question
Rhonda Stallings established a long position on a 5,000 bushel CBOT November 2005 soybean future, and twelve days later she closed the position. The initial
Rhonda Stallings established a long position on a 5,000 bushel CBOT November 2005 soybean future, and twelve days later she closed the position. The initial margin requirement was $1,485, and the maintenance margin was $1,100.At the time she established her position, the futures price was $30,500 (610 cents per bushel), and she closed her position when the futures price was $29,300. In addition to her initial deposit of $1,485, she made a deposit of$600 to her margin account six days after she established her position. Find Rhondas annual effective yield for the twelve-day period during which her long position was open.
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