You are short 2 soybean futures contracts (5,000 by each) at a price of $3.50 per...
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You are short 2 soybean futures contracts (5,000 by each) at a price of $3.50 per bushel. Your initial margin is $3,500. a. If you are a speculator, what do you want to happen to the price of beans between now and your expiration? b. If the price of the contract goes to $3.60, what is the new amount in your margin account, and the percent return on your position? c. Suppose instead, the price of the contract went to $3.35. What would be the value in your margin account and the percent return on your position? You are long 3 soybean futures contracts (5,000 by each) at a price of $4.10 per bushel. Your initial margin is $7,500. a. If you are a speculator, what do you want to happen to the price of beans between now and your expiration? b. If the price of the contract goes to $4.60, what is the new amount in your margin account, and the percent return on your position? c. Suppose instead, the price of the contract went to $3.95. What would be the value in your margin account and the percent return on your position? You are short 2 soybean futures contracts (5,000 by each) at a price of $3.50 per bushel. Your initial margin is $3,500. a. If you are a speculator, what do you want to happen to the price of beans between now and your expiration? b. If the price of the contract goes to $3.60, what is the new amount in your margin account, and the percent return on your position? c. Suppose instead, the price of the contract went to $3.35. What would be the value in your margin account and the percent return on your position? You are long 3 soybean futures contracts (5,000 by each) at a price of $4.10 per bushel. Your initial margin is $7,500. a. If you are a speculator, what do you want to happen to the price of beans between now and your expiration? b. If the price of the contract goes to $4.60, what is the new amount in your margin account, and the percent return on your position? c. Suppose instead, the price of the contract went to $3.95. What would be the value in your margin account and the percent return on your position?
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Lets analyze the scenarios based on your positions Scenario 1 Short 2 Soybean Futures Contracts at 3... View the full answer
Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
Posted Date:
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