Question: Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 258 . Her

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 258 . Her analysis suggests that July oats should be trading at about 253 in a couple of months. Assuming that her expectations hold up, what kind of return on invested capital will she make if she shorts 3 July oats contracts (each contract covers 5,000 bushels of oats) by depositing an initial margin of $ 570 per contract?

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!

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 285 . Her analysis suggests that July oats should be trading...

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 247. Her analysis suggests that July oats should be trading...

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 248. Her analysis suggests that July oats should be trading...

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 227. Her analysis suggests that July oats should be trading...

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at $248. Her analysis suggests that July oats should be trading...

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 2 8 0 . Her analysis suggests that July oats should be...

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 271 . Her analysis suggests that July oats should be trading...

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 284. Her analysis suggests that July oats should be trading...

Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 212. Her analysis suggests that July oats should be trading...

A, B and C were partners in a firm sharing profits and losses according to their Capital. On 1 April 2020 their Balance Sheet was as follows: Balance Sheet of A, B and C (as on 1 April 2020) OMR OMR...

Laura Mills is the controller of Peer Jets International, a manufacturer of small corporate jets. She has undertaken a project to study the behavior of overhead cost. She has assembled factory...

Interest and Penalties ( LO 1 2 . 3 ) In the 2 0 2 4 tax year, Michelle paid the following amounts relating to her 2 0 2 2 tax return: Line Item DescriptionAmountTax deficiency$ 5 , 0 0 0 Negligence...

is the process of guiding the activities of organization members in appropriate directions. Communicating Influencing Controlling Planning Organizing

How likely is it that some form of semistructured or in-depth interviews would be an acceptable form of data gathering within the organisation?

Which TWO of the following can be treated as forms of qualitative data? a Google analytics. b Social media posts. c LinkedIn connection requests. d Web pages.

Which of the following statements are correct in relation to using video recording as a form of research data? a Takes a great deal of time to do. b The data must be interpreted. c Should be...