Question: Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 294 . Her
Taryn Arsenault is a regular commodities speculator. She is currently considering a short position in July oats, which are now trading at 294 . Her analysis suggests that July oats should be trading at about 285 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 $665 per contract? Her return on invested capital is \% (Round to two decimal places)
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
