Question
Speculation Math Calculate the profit or loss for each trade. Determine if there will be a margin call and what the account balance would be
Speculation Math
Calculate the profit or loss for each trade. Determine if there will be a margin call and what the account balance would be after each offsetting trade.
Maintenance margin = $80,000 (at the end of each day, you are required to have $80,000 in your account)
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| Profit/Loss | Margin Call | Account Balance |
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| $100,000 |
| Buy 10 Live Cattle contract @ $107.600 | Sell 10 Live Cattle contract @ $107.200 |
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| Buy 10 Lean Hog contract @ $69.20 | Sell 10 Lean Hog contract @ $68.50 |
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| Buy 10 Lean Hog contract @ $68.00 | Sell 10 Lean Hog contract @ $67.90 |
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| Sell 5 Corn contracts @3.7575 | Buy 5 Corn contracts @ $3.7500 |
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| Sell 10 Corn contracts @ $3.7500 | Buy 10 corn contracts @ $3.7150 |
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| Buy 10 Soybean contracts @@8.9325 | Sell 10 Soybean contracts @ $8.8325 |
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| Sell 10 Soybean Meal contracts @ $298.0 | Buy 10 Soybean Meal contracts @ $302.1 |
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| Sell 10 Live Cattle contracts @ $105.000 | Buy 10 Live Cattle contracts @ $110.500 |
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| Buy 10 Lean Hog contracts @ $65.000 | Sold 10 Lean Hog contracts @ $72.550 |
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| Sold 20 wheat contracts @ $4.8075 | Bought 20 wheat contracts @ $4.6225 |
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At the completion of trading, did the speculator make money or lose money?
How much?
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