Question $5(22$ pts$)$: Margin Account

Assume you sell one July $\text{'}23$ KC HRW contract today at $$5\mathrm{.}275$; its initial is $$2,420$ with

a maintenance of $$2,200.$

Today $-$ July KC HRW settles at $$5\mathrm{.}275.$

What do you deposit in the margin account?

Session $2-$ July KC HRW settles at $$5\mathrm{.}3225$

What is the gain or loss from session $2?$

What is the balance?

Is there a margin call? If so$,$ what is it$?$

Session $3-$ July KC HRW settles at $$5\mathrm{.}5425$

What is the gain or loss from session $3?$

What is the balance?

Is there a margin call? If so$,$ what is it$?$ Session $4-$July KC HRW settles at $$5\mathrm{.}465$

What is the gain or loss from session $4?$

What is the balance?

Is there a margin call? If so$,$ what is it$?$

Session $5-$ Offset July KC HRW at $$5\mathrm{.}6025$

Calculate the profit or loss on the entire trade.

Question $6(22$ pts$)$: Margin Account

Assume you buy one July $\text{'}23KC$ HRW contract today at $$5\mathrm{.}2875$; its initial is $$2,310$

with a maintenance of $$2,100.$

Today $-$ July KC HRW settles at $528\text{'}6.$

What do you deposit in the margin account?

Session $2-$ July KC HRW settles at $520\text{'}6$

What is the gain or loss from session $2?$

What is the balance?Question $3(3$ pts$)$: Offsetting Session $2-$ July KC HRW settles at ${520}^{\text{'}}6$

What is the gain or loss from session $2?$

What is the balance?

Is there a margin call? If so$,$ what is it$?$

Session $3-$ July KC HRW settles at $534\text{'}2$

What is the gain or loss from session $3?$

What is the balance?

Is there a margin call? If so$,$ what is it$?$

Session $4-$ Offset July KC HRW at $536\text{'}4$

What is the gain or loss from session $4?$

What is the balance?

Is there a margin call? If so$,$ what is it$?$

Session $5-$ Offset July KC HRW at $543\text{'}0$

Calculate the profit or loss on the entire trade.

Today $-$ sell $1$ Jan Feeder Cattle contract at $237\mathrm{.}725($contract quantity is $50,000$ lbs$.)$

December $1^{st}-$ buy $1$ Jan Feeder Cattle contract at $254\mathrm{.}825$

Calculate the profit or loss on the contract.

Question $4(3$ pts$)$: Offsetting

Today $-$ buy $1$ Nov Soybeans contract at $1185\text{'}4$

Oct $1^{st}-$ sell $1$ Nov Soybeans contract at $1312\text{'}0$

Calculate the profit or loss on the contract.

Question $5(3$ pts$)$: Offsetting

Today $-$ sell $1$ July KC HRW contract at $572\text{'}2$

June $1^{st}-$ buy $1$ July KC HRW contract at ${630}^{\text{'}}6$

Calculate the profit or loss on the contract.

Question $6(3$ pts$)$: Offsetting

Today $-$ sell $1$ Nov Soybeans contract at $10852$

September $1^{st}-$ buy $1$ Nov Soybeans contract at $1187\text{'}4$

Calculate the profit or loss on the contract.