At the close of futures trading on February 3, 2022, a clearing house member is long...

Transcribed Image Text:

At the close of futures trading on February 3, 2022, a clearing house member is long 100 contracts and the settlement price is $50,000 per contract. The original margin is $2,500 per contract. On February 4, 2022, the member becomes responsible for clearing an additional 20 long contracts, entered into at a price of $52000 per contract. The settlement price for February 4, 2022 is $51000. What is the change to the required balance of the member's margin account with the exchange clearing house? (Note that the clearing house member would typically be handling multiple retail trading clients. This question is about a clearing house member, not an individual trader.) Enter your answer in dollars without the dollar sign or the thousand separator () If the change is an increase, enter a positive number. If the change is a decrease, enter a negative number. Answer: Check Suppose that on February 8, 2022, a speculator takes a short position in one CME May 2023 copper futures contract when the futures price is $3.5827 per pound. At the end of trading on December 30, 2022, the futures price is $3.4452 per pound. The trader closes out the position on April 26, 2023 when the futures price is $3.6637 per pound. What is the (final) profit on the contract when the position is closed out? Report your answer for the entire contract in dollars and cents (two decimal places) without entering the dollar sign or the thousands separator. If the trade creates a loss, enter your answer with a minus sign. Answer: Check At the close of futures trading on February 3, 2022, a clearing house member is long 100 contracts and the settlement price is $50,000 per contract. The original margin is $2,500 per contract. On February 4, 2022, the member becomes responsible for clearing an additional 20 long contracts, entered into at a price of $52000 per contract. The settlement price for February 4, 2022 is $51000. What is the change to the required balance of the member's margin account with the exchange clearing house? (Note that the clearing house member would typically be handling multiple retail trading clients. This question is about a clearing house member, not an individual trader.) Enter your answer in dollars without the dollar sign or the thousand separator () If the change is an increase, enter a positive number. If the change is a decrease, enter a negative number. Answer: Check Suppose that on February 8, 2022, a speculator takes a short position in one CME May 2023 copper futures contract when the futures price is $3.5827 per pound. At the end of trading on December 30, 2022, the futures price is $3.4452 per pound. The trader closes out the position on April 26, 2023 when the futures price is $3.6637 per pound. What is the (final) profit on the contract when the position is closed out? Report your answer for the entire contract in dollars and cents (two decimal places) without entering the dollar sign or the thousands separator. If the trade creates a loss, enter your answer with a minus sign. Answer: Check