Question: How did they compute 7728 as the answer? You post the required initial margin of $3489 per contract and sell 2 copper futures contracts for

How did they compute 7728 as the answer?

You post the required initial margin of $3489 per contract and sell 2 copper futures contracts for 25,000 pounds of copper each at a futures price of $3.18 per pound. At the close of the trading day, the futures price is $3.165. What is your account balance at the close of the day? Assume no margin calls. Answer Key:7728

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Jack Carman is the sales manager of a car dealership. His team is 8 car sales away from making their sales quota and receiving bonuses. He has been given data about car sales for the past 90 days....

You post the required initial margin of $3398 per contract and sell 2 copper futures contracts for 25,000 pounds of copper each at a futures price of $3.168 per pound. At the close of the trading...

You post the required initial margin of $3268 per contract and sell 2 copper futures contracts for 25,000 pounds of copper each at a futures price of $3.208 per pound. At the close of the trading...

You post the required initial margin of $3269 per contract and sell 2 copper futures contracts for 25,000 pounds of copper each at a futures price of $3.171 per pound. At the close of the trading...

You post the required initial margin of $3277 per contract and sell 2 copper futures contracts for 25,000 pounds of copper each at a futures price of $3.201 per pound. At the close of the trading...

Question 1 of 4 2.25 Points You post the required initial margin of $3334 per contract and sell 2 copper futures contracts for 25,000 pounds of copper each at a futures price of $3.175 per pound. At...

You post the required initial margin of $3605 per contract and sell 2 copper futures contracts for 25,000 pounds of copper each at a futures price of $3.175 per pound. At the close of the trading...

You post the required initial margin of $3484 per contract and sell 2 copper futures contracts for 25,000 pounds of copper each at a futures price of $3.179 per pound. At the close of the trading...

It is now September 2023. The company you work for anticipates that it will purchase 1 million pounds of copper in each in Feb 2024, August 2024, and Feb 2025. The company has decided to use the...

Question # 3 (Mar. Mark-1-42+2) further that the current futures price is an investor contacts his broker to SELL 3 October 23013 Copper futures contracts Suppone entered into on ugast 0, is 9g%...

Evaluate the potential gains and losses for forwards,future,call options,put options and swaps. Outline and describe the different risks that each type of derivative contract faces. Describe...

Show the ordering of vertices produced by the topological sort algorithm when it is run on the following DAG: A R M H Figure 2: Figure of the DAG. Show all steps of of the topological sort algorithm....

Jeff makes coffee tables in his workshop, and while he is great at woodworking, he needs some help figuring out his finances and how much time he should devote to this side hustle. After a lot of...

9 The first three terms of a sequence are 4, 10, 28, ... a Which card, A, B or C, shows the correct term-to-term rule? multiply by 3 then subtract 2 B divide by 2 then add 8 C subtract 2 then...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".