A futures trader has a short position in a copper futures contract with an initial margin of

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

Question:

A futures trader has a short position in a copper futures contract with an initial margin of $6,000 and a maintenance margin of $4,500. If the trader's balance is $4,200, what is the size of the required deposit?

O $300

O $1,500

O $1,800

O $4,500

O None of the above

Related Book For answer-question

Introduction To Corporate Finance

ISBN: 9781118300763

3rd Edition

Authors: Laurence Booth, Sean Cleary

See More Books

Posted Date: Oct 12, 2023 04:14 AM

See More Questions

Whitney is an adjunct faculty at a local college, where she earned $895.00 during the most recent semimonthly pay period. Her prior year-to-date pay is $13,425. She is single and has indicated a...
Clearcopy, a printing company, acquired a new press on January 1. The press cost $171,600 and had an expected life of 8 years or 4,500,000 pages and an expected residual value of $15,000. Clearcopy...
The product manager for a new haircare product called turbo is evaluating breakeven points for her organization. She asked you, the analyst, to analyze her situation. The data has been given to you...
A closed tank contains oil with a specific gravity 0.85. If the gauge pressure at a point 10 feet below the oil surface is 23. 7 psi (lb/in.2), determine the absolute pressure and gauge pressure (in...
A thin spherical shell of mass 4.00 kg and diameter 0.200 m is filled with helium (density = 0.180 kg/m3). It is then released from rest on the bottom of a pool of water that is 4.00 m deep. (a)...
International markets account for a relatively small share of Kors' sales. What can Kors do to expand international sales?
True or False: When checking for soft foot on a large, heavy machine resting on I-beam rails, it is always advisable to use the one-foot-at-atime method called for by the laser equipment manual.
Chris LeBlanc estimates that if he does 5 hours of research using data that will cost $75, there is a good chance that he can improve his expected return on a $10,000, 1-year investment from 8% to...
Tarrant Amertex Regional Hospital, one of our hospitals in the Fort Worth area, has been in need of a new Chief Executive Officer. Last week, we reached a "handshake" dealthough per current protocols...
An Expert Witness can be anyone with knowledge or experience of a particular field or discipline beyond that to be expected of a layman. The Expert Witness's duty is to give to the Court or tribunal...
Kitty Cat Partners, a fund of hedge funds, has the following fee structure: o 2/20 underlying fund fees with incentive fees calculated independently o Kitty Cat fees are calculated net of all...
A) Grounding is required to complete this method of charging B) rubbing ebonite rod with fur results in electrons transferred from fur to rod C) neutral electroscope becomes negative charged when top...
Consider 'Particle in a 3D Box' model, where the particle is a helium atom. How many freedom degrees does the particle possess?
A triathlete starts swimming north at a velocity of 8m/s while the current is taking her at 6m/s at an angle of 300 deg. How far from the start is she after 5 minutes?
Determine the effect of atmospheric stability class on the ground-level concentration of CO at a location 500 m downwind from a busy urban highway for a 3 m/s crosswind perpendicular to the road....
8. A Smart Fortwo car has a mass of 730 kg, which we assume on a flat surface is evenly distributed over its four tires. If you push on one tire with a force of 500 N in the horizontal direction,...
What does the map attached below show about the spread of printed materials across Europe? Which areas of Europe produce the most printed books? Why do you think these areas produce the most books?...
Show that the block upper triangular matrix A in Example 5 is invertible if and only if both A 11 and A 22 are invertible. Data from in Example 5 EXAMPLE 5 A matrix of the form A = [ A11 A12 0 A22 is...
Based on the cash flows given below, calculate the PI of a project that has a required rate of return of 15 percent. Also, indicate whether the project should be accepted. Year 0: $90,000 Year 1:...
TrenStar Inc. obtained the following incomplete information from ABC Company and has given you the task of completing thetable. Security 1 Beta Security 2 Beta Weight in Security 1 Portfolio Beta 0.6...
List the correct book-keeping entries when a firm sells $40,000 worth of inventories for $70,000 using credit sales.
With a neat sketch of a room air-conditioner, explain its working principle.
Distinguish between a heat engine, a heat pump, and a refrigerator.
Discuss about psychrometry and their properties?

A futures trader has a short position in a copper futures contract with an initial margin of

Question:

Expert Answer:

The required deposit or additional margin needed can be calculated usin... View the full answer

Introduction To Corporate Finance

Students also viewed these corporate finance questions