Southern Airlines (SA) needs 100 tons of jet fuel in 6 days and purchased future contracts...
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Southern Airlines (SA) needs 100 tons of jet fuel in 6 days and purchased future contracts at the price of $2500 per ton. The following table shows the daily price of jet fuel future contracts until the delivery date. Day Future price ($ per ton) 0 1 2 3 4 5 6 2500 2550 2450 2300 2200 2350 2400 Suppose SA deposited $100,000 on day 0 in a margin account in order to trade the future contracts. The brokerage company that manages the margin account requires a minimal balance of $85,000. On which day would SA receive its first margin call? Southern Airlines (SA) needs 100 tons of jet fuel in 6 days and purchased future contracts at the price of $2500 per ton. The following table shows the daily price of jet fuel future contracts until the delivery date. Day Future price ($ per ton) 0 1 2 3 4 5 6 2500 2550 2450 2300 2200 2350 2400 Suppose SA deposited $100,000 on day 0 in a margin account in order to trade the future contracts. The brokerage company that manages the margin account requires a minimal balance of $85,000. On which day would SA receive its first margin call?
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Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
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