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The following question has to do with the Chicago SRW Wheat futures contract. Contract Size 5,000 bushels Price Quotation US Cents per bushel Minimum Price
The following question has to do with the Chicago SRW Wheat futures contract.
Contract Size | 5,000 bushels |
Price Quotation | US Cents per bushel |
Minimum Price Fluctuation | 1/4 of one cent per bushel. |
Settlement Method | Deliverable |
Maintenance Margin | $2,000 |
Initial Margin | $2,200 |
Note, a quotation of 43'2 means 43+2/8 cents per bushel.
On the first trade day, you go long 10 of the contract. The following table contains the trade prices, and the settlement prices for the 5 days you held the position. Determine the Daily PnL, the margin balance prior to any margin calls and any margin calls that take place. You never remove any excess cash from the account
Day | Trade Price ($) | Settle Price ($) | Daily Gain ($) | Margin Balance Before Call | Margin Call | Margin Balance After Call |
1 | 548'6 | 0 | ||||
1 | 545'0 | |||||
2 | 549'4 | |||||
3 | 548'6 | |||||
4 | 553'0 | |||||
5 | 541'4 | |||||
5 | 544'2 |
What was the overall PnL for this trade?
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