A USDCNH futures contract on HKEX covers USD100,000 with a minimum price change of $0.0001 is sold

Fantastic news! We've Found the answer you've been seeking!

Question:

A USDCNH futures contract on HKEX covers USD100,000 with a minimum price change of $0.0001 is sold for CNH 6.6546. If you just place the initial margin of CNH11,305 and the maintenance margin is CNH 9,044, at what price would there be a margin call?

Related Book For answer-question

Introduction To Derivatives And Risk Management

ISBN: 9781305104969

10th Edition

Authors: Don M. Chance, Robert Brooks

See More Books

Posted Date: Apr 29, 2024 09:50 AM

See More Questions

When was the vast majority of wealth created in America, and by whom: (a) Carnegies, Vanderbilts, and Rockefellers before 1990? (b) Automobile, food, and real estate mag-nates after 1900 but before...
Why can a halide ion such as Br- react with a protonated primary alcohol, but not with a protonated primary amine?
A composite bar made up of aluminium and steel is held between two supports as shown in Fig. 13.53.The bars are stress free at a temperature of $38^{\circ} \mathrm{C}$. What will be the stresses in...
The KLK Clothing Company manufactures professional clothing for women. In order to keep costs low while still producing quality clothes, KLK conducts many research and development projects. On a...
Step 6- Choose an article that is specific to your topic for the research process project and answer the following questions: What are the article title and publication source? Who is the intended...
In Year 1 , Stallman Co . had a break - even point of 8 0 , 0 0 0 units, a selling price of $ 1 9 per unit, and fixed costs of $ 2 0 0 , 0 0 0 . What is Stallman Co . s variable cost per unit? (...
Which of the following are typical characteristics of public sector projects? i. Large first costs ii. Benefits that may be hard to quantify iii. Benefits that are realized quickly a. I and III only...
True or false: In solving a capital budgeting problem involving investment opportunities that are divisible (i.e., you can invest in portions of the opportunities instead of "all or nothing"), you...
An approach to justifying public sector projects that minimizes revenues while still allowing a business to earn a fair return for its shareholders is a. Revenue requirements. b. Revenue effectivity....
Which of the following is not an approach that can be used to perform a capital budgeting economic analysis? a. Box-Jenkins algorithm b. Excel SOLVER c. Exhaustive enumeration d. Lori-Savage...
True or False: In performing engineering economic analyses of replacement alternatives, it is best to perform before-tax analyses, since incorporating income tax considerations in the analysis is...
Write a reflective paper summarizing your experience of the Business Seminar Course. Refer to the Core Values in this reflective exercise and to discuss how those Core Values were exhibited in your...
In the figure, two loudspeakers, separated by a distance of d1 = 2.63 m, are in phase. Assume the amplitudes of the sound from the speakers are approximately the same at the position of a listener,...
Correlation between height and weight for players on the 2014 Brazil World Cup Team, using data from all 23 players on the roster. State whether the quantity described is a parameter or a statistic...
In Example 4.1, $X$ is the current measured in milliamperes. What is the expected value of power when the resistance is 100 ohms?
One of the many wonderful things about studying statistics is that graduate programs in statistics often pay their graduate students, which means that many graduate students in statistics are able to...

A USDCNH futures contract on HKEX covers USD100,000 with a minimum price change of $0.0001 is sold

Question:

Expert Answer:

To determine the price at which a margin call would occur we need to calculate the thresho... View the full answer

Introduction To Derivatives And Risk Management

Students also viewed these finance questions