Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are short 17 gasoline futures contracts, established at an initial settle price of $2.155 per gallon, where each contract represents 42,000 gallons. Your initial

image text in transcribed

You are short 17 gasoline futures contracts, established at an initial settle price of $2.155 per gallon, where each contract represents 42,000 gallons. Your initial margin to establish the position is $10,250 per contract, and the maintenance margin is $9,350 per contract. Over the subsequent four trading days, gasoline settles at $2.141, $2.169, $2.194, and $2.216, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement. (Leave no cells blank - be certain to enter "O" wherever required. Input all amounts as positive values. The daily margin account value is after the margin call for that day.) Margin Account Total Profit/Loss Margin Call Days Day 1 Day 2 Day 3 Day 4 Total

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

International Finance

Authors: Keith Pilbeam

2nd Edition

0333730976, 978-0333730973

More Books

Students also viewed these Finance questions

Question

discuss ways of measuring sickness absence and sickness presence;

Answered: 1 week ago