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Tsingshan sold 200,000 ton March 2023 contracts at price of $20 per kilo. The Initial Margin was $20,000 per contract. On March 8,2022 price of
Tsingshan sold 200,000 ton March 2023 contracts at price of $20 per kilo. The Initial Margin was $20,000 per contract. On March 8,2022 price of Nickel went suddenly up $100 per kilogram . Q. 3.1 What is the margin call to Tsingshan? Will there be any damage to Tsingshan's booking broker if Tsingshan cannot pay the margin call Q.3.2 Data: XYZ shorts 200,000 Ton of Nickel on March 1 at $20,000 per ton Below are Nickel prices for 2/22; and 3/1/223/9/22 Calculate the margin calls on every day between March 2 through March 7 and sum them up. By end of March 8 trading a new margin call arrives(How much?) and XYZ cannot meet it- its position is liquidated at $100,000 per ton and company is destroyed, although it would be viable if it could survive till March 9 . How can it be? Q. 3.3 Use data from Q. 3.2 to explain the Situation Tsingshan was involved in Tsingshan sold 200,000 ton March 2023 contracts at price of $20 per kilo. The Initial Margin was $20,000 per contract. On March 8,2022 price of Nickel went suddenly up $100 per kilogram . Q. 3.1 What is the margin call to Tsingshan? Will there be any damage to Tsingshan's booking broker if Tsingshan cannot pay the margin call Q.3.2 Data: XYZ shorts 200,000 Ton of Nickel on March 1 at $20,000 per ton Below are Nickel prices for 2/22; and 3/1/223/9/22 Calculate the margin calls on every day between March 2 through March 7 and sum them up. By end of March 8 trading a new margin call arrives(How much?) and XYZ cannot meet it- its position is liquidated at $100,000 per ton and company is destroyed, although it would be viable if it could survive till March 9 . How can it be? Q. 3.3 Use data from Q. 3.2 to explain the Situation Tsingshan was involved in
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