Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

We suppose that the current futures price is $ 4 . 5 7 2 5 per bushel, delivered in Dec. Contract size = 1 0

We suppose that the current futures price is $4.5725 per bushel, delivered in Dec. Contract size =100 bushels. Investor has contracted to buy a total of 300 bushels. Initial margin: $50 per contract.
If by the end of the first day the futures price has dropped from $4.5725 to $4.56 per bushel. What is the balance in the margin account by the end of the first day?
$146.25
$130.52
$135.67
$140.15
image text in transcribed

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_2

Step: 3

blur-text-image_3

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

Finance For Managers

Authors: E. Martinez Abascal

1st Edition

0077140079, 9780077140076

More Books

Students also viewed these Finance questions

Question

=+analysis, and social media communication audit

Answered: 1 week ago