On JAN 1 2006 AMARANTH opened the spread: Long APR 2007 Short MAR 2007 for $1.90/unit....
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On JAN 1 2006 AMARANTH opened the spread: Long APR 2007 Short MAR 2007 for $1.90/unit. AMARANTH speculated that the spread will Widen and used 20,000 NG futures in the spread. Every NG futures is for 10,000 units. 8.1 Show how this spread would have been closed on JUL 27, 2006, when the spread was $2.60/unit, if AMARANTH had closed it. Calculate the total Profit/Loss. 8.2 AMARANTH did not close the spread on JUL 27, 2006 but was forced to close the spread on SEP 15, 2006 when the spread was at $0.50/unit. Show how the spread was closed and calculate the total Profit/Loss. On JAN 1 2006 AMARANTH opened the spread: Long APR 2007 Short MAR 2007 for $1.90/unit. AMARANTH speculated that the spread will Widen and used 20,000 NG futures in the spread. Every NG futures is for 10,000 units. 8.1 Show how this spread would have been closed on JUL 27, 2006, when the spread was $2.60/unit, if AMARANTH had closed it. Calculate the total Profit/Loss. 8.2 AMARANTH did not close the spread on JUL 27, 2006 but was forced to close the spread on SEP 15, 2006 when the spread was at $0.50/unit. Show how the spread was closed and calculate the total Profit/Loss.
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81 Closing the Spread on July 27 2006 Given Spread opened on Jan 1 2006 for 190unit Spread closed on ... View the full answer
Related Book For
Complete Business Statistics
ISBN: 9780077239695
7th Edition
Authors: Amir Aczel, Jayavel Sounderpandian
Posted Date:
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