Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Taryn Arsenault is a regular commodities speculator. She is currensy considering a short postion in July oats, which are now trading at 238 . Her
Taryn Arsenault is a regular commodities speculator. She is currensy considering a short postion in July oats, which are now trading at 238 . Her analysis sugposts that July cats thould be trading at about 228 in a couple of months. Assuming that her expectations hold up, what kind of retum on invested captal will she make if she shorts 3JUly outs controcts (each contract covers 5.000 busheli of oats) by deposting an initial margin of $568 per contract? Het retuen on irwesled capital is 6. (Round to two decimal places )
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