Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You are short 22 gasoline futures contracts, established at an initial settle price of $2.33 per gallon, where each contract represents 42,000 gallons. Your initial
You are short 22 gasoline futures contracts, established at an initial settle price of $2.33 per gallon, where each contract represents 42,000 gallons. Your initial margin to establish the position is $13,625 per contract, and the maintenance margin is $12,725 per contract. Over the subsequent four trading days, gasoline settles at $2.316, $2.344, $2.375, and $2.391, 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 "0" 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started