Some analysts compare the initial margin on a futures contract to a down payment. Some label it
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 73% (19 reviews)
With initial margin the trader has a position but does not own any und...View the full answer
Answered By
Robert Mwendwa Nzinga
I am a professional accountant with diverse skills in different fields. I am a great academic writer and article writer. I also possess skills in website development and app development. I have over the years amassed skills in project writing, business planning, human resource administration and tutoring in all business related courses.
4.90+
187+ Reviews
378+ Question Solved
Related Book For
Question Posted:
Students also viewed these Banking questions
-
What is an option on a futures contract?
-
Assume the initial margin on a Eurodollar futures contract is $878 and the maintenance margin is $650 (the contract size is $1mln). If the contract price declines by 25 basis points, by how much do...
-
Suppose the initial margin on heating oil futures is $6,750, the maintenance margin is $5,000 per contract, and you establish a long position of 10 contracts today, where each contract represents...
-
Two stocks, A and B, have beta coefficients of 0.8 and 1.4, respectively. If the expected return on the market is 10 percent and the risk-free rate is 5 percent, what is the risk premium associated...
-
Tourettes syndrome is an inheritable, childhood onset neurological disorder involving multiple motor tics and at least one vocal tic. A U.S. study that was published in the June 5, 2009, CDC...
-
The manager of a computer software company wishes to study the number of hours senior executives by type of industry spend at their desktop computers. The manager selected a sample of five executives...
-
List the items which the Companies Act 1985 requires auditors to include in their reports to shareholders.
-
Calculating NPV and IRR a project that provides annual cash flows of $24,000 for nine years costs $110,000 today is this a good project if the required return is 8 percent? What if its 20 per- cent?...
-
Steve's Scooters plans to sell a standard scooter for $320 and a chrome scooter for $400. Steve's purchases the standard scooter for $80 and the chrome scooter for $100. Steve's expects to sell one...
-
Four masses A, B, C and D revolve at equal radii and are equally spaced along a shaft. The mass B is 7 kg and the radii of C and D make angles of 90 and 240 respectively with the radius of B. Find...
-
Are there margin requirements for the following positions? Explain why or why not. a. Buy an interest rate cap b. Sell a put option on Eurodollar futures c. Sell an interest rate floor d. Sell a...
-
Suppose that you are a speculator who trades three- month Eurodollar futures. On November 5, you sell two December three- month Eurodollar futures contracts at 96.81. The subsequent weekly quotes for...
-
Differentiate the terms switching speed and switching frequency.
-
500 Words with reference citations Describe the role societal values have played in the development of family law. Also include in your discussion response how societal values continue to change and...
-
Define family law and list at least five ways in which it has evolved since the 1970s. 2. Identify a minimum of three ways in which technology is influencing the practice of family law. 3. Describe...
-
How do the UK family law and the Canadian family law compare in the outcome of public safety and satisfaction?
-
What specific questions would you ask the parents in a interview for a family law case? What specific questions would you ask the children in a interview for a family law case?
-
Early Career Critical Thinking The Internal Audit department at Pluto - Cola assigns its team members to special working groups every year. Each group is assigned specific types of internal projects,...
-
In Exercises 2942, find each indicated sum. 4 (-1)+1 =0 (i+1)!
-
When the concentration of a strong acid is not substantially higher than 1.0 10-7 M, the ionization of water must be taken into account in the calculation of the solution's pH. (a) Derive an...
-
What long-term nondeposit funds sources do banks and some of their closest competitors draw upon today? How do these interest costs differ from those costs associated with most money market...
-
What is the available funds gap?
-
Robertson State Bank decides to loan a portion of its reserves in the amount of $70 million held at the Federal Reserve Bank to Tenison National Security Bank for 24 hours. For its part, Tenison...
-
Describe the impact of Non-Uniform Memory Access (NUMA) on an operating system's memory management strategies, and how an OS can optimize performance in a NUMA-based hardware environment .
-
Explain the concept of system calls in operating systems, and discuss the security implications of exposing system-level operations to user space.
-
Rafner Manufacturing has the following budgeted data for its two production departments. Budgeted Data Assembly Overhead cost $ 1,560,000 $ 1,035,000 Direct labor hours Machine hours 13,000 direct...
Study smarter with the SolutionInn App