Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are a speculator in corn futures. Your initial margin is $1,925 per contract, and your maintenance margin is $1,750 per contract. Each contract is

You are a speculator in corn futures. Your initial margin is $1,925 per contract, and your maintenance margin is $1,750 per contract. Each contract is for 5,000 bu. of corn. You open a short position in one contract at $4.493 per bushel, the settlement price that day is $4.639 per bushel, and you keep your position open through the end of the trading day. What will your account balance be after your account is marked to market? Assume that you deposit the initial margin when you open your short position.

Enter your answer in dollars, rounded to the nearest dollar. Do not type dollar signs or commas. For example, type $1,234.56 as 1235

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

Every Womans Guide To Personal Finance

Authors: Rosanna Spero

1st Edition

0948035153, 9780948035159

More Books

Students also viewed these Finance questions

Question

What is a co-payment?

Answered: 1 week ago