Question: Margin call help please with work shown 2. A T-bond futures contract has a face value of $100,000, currently it is priced at 109-12. The

Margin call help please with work shown

2. A T-bond futures contract has a face value of $100,000, currently it is priced at 109-12. The initial margin is 3,713, and maintenance margin is $2,750. Mark longs ten T-note futures contract and Cindy shorts ten T-note futures contract. Monday's close is 110-21, and Tuesday's close is 108-25. a. What are the margin balances for Mark and Cindy on Monday? Who will get a margin call, by how much? b. What are the margin balances for Mark and Cindy on Tuesday? Who will get a margin call, by how much

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!

Kryll Company set the following standard costs per unit for its single product. Overhead is applied using direct labor hours. The standard overhead rate is based on a predicted activity level of 80%...

Margin call help please with work shown 1.A T-note futures contract has a face value of $100,000, currently it is priced at 109'12. The initial margin is 1,620, and maintenance margin is $1,200. Jack...

Please, I need help with the calculations for the following 25 problems in the "final" tab of the workbook before 9pm CST. FINC 340 Quizzes 1 2 Derivatives can be strictly defined as Financial...

Research Paper: Topic: Why did the traditional financial risk approaches, methods, and tools fail in the financial market meltdown of 2008 - 2009? Discuss questions DQ #1: How has fair value...

Answering any or all would be a huge help. Please show work 2. Your company issues 2,500 bonds each with a face value (par value) of S1000, paying quarterly (m-4) coupons with the coupon rate of 5...

I need help on questions 12-15 in section 5. Could you also explain how you solved them 1 Sample Questions from Previous FIN 3310 Departmental Final Exams (Revised 2015) Printed below is a sampling...

QUESTION 1 The tax rate that determines the amount of tax that will be due on the next dollar of taxable income earned is called the: 1. average tax rate. 2. variable tax rate. 3. marginal tax rate....

The tax rate that determines the amount of tax that will be due on the next dollar of taxable income earned is called the: 1. average tax rate. 2. variable tax rate. 3. marginal tax rate. 4. fixed...

I need a step by step solutions for the 10 problems in the excel file. The correct answers are provided I only need the solutions steps. Subject is Finance (options valuation) On March 2, a Treasury...

Hey i need you help with my Portfolio final report. i get some of them and want you to finish it, i will upload the professor sample report, and half of my work, plus the week 4 and week 5 report...

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...

All the following are correct about these two hydrogen's b321 and 32-1 states except O these two states are orthogonal. O these two states are different. O they are dependent ( O they represent a...

Barrons reported that the average number of weeks an individual is unemployed is 17.5 weeks (Barrons, February 18, 2008). Assume that for the population of all unemployed individuals the population...

d d v v 3 - 9 v e v v

How does a firms dividend policy affect each of the following? a. The value of its long-term warrants. b. The likelihood that its convertible bonds will be converted. c. The likelihood that its...

Kelly Company had cash receipts from customers in 2012 of $142,000. Cash payments for operating expenses were $97,000. Kelly has determined that at January 1, accounts receivable was $13,000, and...

Consider the commodities and financial assets listed in Table 27.6. The risk-free interest rate is 6 percent a year, and the term structure is flat. a. Calculate the six-month futures price for each...

Explain the difference between NOPAT and net income. Which is a better measure of the performance of a companys operations?

Dingel Corporation has contracted with you to prepare a statement of cash flows. The controller has provided the following information. Additional data related to 2010 are as follows. 1. Equipment...

The next step after completing the job analysis and deciding which jobs need to be filled is A . what skills are necessary to perform the job B . determining the personal qualities, traits, skills,...

b. Did you suppress any of your anger? Explain.

2. To learn more about the way you handle anger, record your anger responses in a journal for a period of five days. When anger surfaces, record as many details as possible. What triggered your...

d. If you could relive the situation, would you do anything differently? Explain.