On 1st March 2019 a speculator sells six March 2019 Wheat futures contracts on the Kansas City
Question:
On 1st March 2019 a speculator sells six March 2019 Wheat futures contracts on the Kansas City Board of Trade at a price of 980.75 cents per bushel. The speculator closes out her position on 16th March 2019 at a futures price of 950 cents per bushel. The futures contract is written on 5,000 bushels of wheat and, for a speculator, the initial and maintenance margins are $1,350 and $1,100 per contract respectively
Required
A. Construct a table to illustrate the daily marking-to-market (and final settlement) of the speculator's short futures position The daily settlement prices can be found in the EXCEL spreadsheet March wheat futures contract.xls.
(This Excel file also contains the format of the Table to be completed)
Note:
Assume that the Speculator does not withdraw any excess out of their margin account.
(b)What is the overall profit/loss of the speculator?
Financial Reporting and Analysis
ISBN: 978-0078025679
6th edition
Authors: Flawrence Revsine, Daniel Collins, Bruce, Mittelstaedt, Leon