Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are short 2i] gasoline futures contracts, established at an initial settle price of $2.26 per gallon, where each contract represents 42,0l] gallons. Your initial

image text in transcribed

image text in transcribed
You are short 2i] gasoline futures contracts, established at an initial settle price of $2.26 per gallon, where each contract represents 42,0l] gallons. Your initial margin to establish the position is $8,125 per contract, and the maintenance margin is 95?,225 per contract. lIIIIver the subsequent four trading days, gasoline settles at $2.245. $2.2?4. 52.299, and $2.321, respectively. Compute the balance in your margin account at the end of each of the tour trading days, and compute your total prot 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 oertain to enter "" wherever required. Input all amounts as positive values. Omitd'te "5" sign in your response] Days M in Account Total Frotloss M in Call Dav 1 s $ $ Dav 2 $ $ $ Dav 3 $ $ $ Day 4 $ $ lDSS ' $ Tm 5

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

Fundamentals of Investments, Valuation and Management

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

8th edition

1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697

More Books

Students also viewed these Finance questions