Answered step by step
Verified Expert Solution
Link Copied!

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

image text in transcribed
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

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

Investments

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

7th Edition

007331465X, 978-0073314655

Students also viewed these Finance questions