Question: The initial margin (performance bond) for each wheat futures contract is $1,650. assume you went long one wheat futures contract at the above price and

The initial margin (performance bond) for each wheat futures contract is $1,650. assume you went long one wheat futures contract at the above price and posted margin with your broker, if the next day wheat futures closed at “470” how much money would be left in your margin account?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

To calculate the change in the value of the futures contract and thus the change in the margin accou... View full answer

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!

Scenario: Helping Hand You have just been hired as the new Assistant to the Team Leader of Helping Hand, a community service organisation located in the greater Brisbane area. Your organisation...

Last Sale Net Bid Ask Open Int Puts Last Sale Net bid Ask Vol Open Int 16Aug 155.00(1619H155-E) 6.45 0.75 6.95 7.25 9 16Aug 155.00(1619T155-E) 1.18 (0.75) 1.17 1.25 61 4505 16Aug 166.00(1619H160-E)...

1. Suppose your personal federal income tax rate is 30%. You are trying to decide which of the following bonds to invest in. Both are BBB rated and therefore equally risky. State of Illinois Bond...

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Case 2: Risk management Setup: You recommend the farmer to take a position on the first nearby CME corn futures. This contract will expire in 6 months. Consider you'll use the cost-of-carry model to...

Application Computing Gains, Losses, and Performance Bond Calls on a Futures Contract On Monday morning, you long one CME yen futures contract containing 12,500,000 at a price of US$0.009433. Suppose...

In January, Mr Investor would like to buy 500,000 bushels of wheat forward for May delivery.The current futures (or forwards) price for May delivery is $3.30 per bushel.The size of astandard wheat...

Exercise Problems for Chapters 1, 2, 3, 4, and 5 1. Your friend saved 12,000 SAR during his studies in KSU. He wants to invest and he wants your help to choose one of the following two alternative...

3. On June 23 traders A and B traded one July 16 wheat futures contract at $4.2775/bu. Trader A went short and trader B went long, and they are both speculators. Initial and maintenance margins for...

Initial Price Ton GA size HW 5% 0.18 5% 3.5% 0.81 Case 2: Hedging with futures Description The CEO of a firm that mainly operates in the bakery industry is currently very concerned with the price of...

Describe and explain how the temperature of the atmosphere fluctuates with height across the four layers. 140 130 120 - thermosphere 110 100 - 90- -mesopause temperature mesosphere 60 - 50 --...

If as in (11) is the average occupancy of a single orbital of a boson system, then from (5.83) show that = (1 + M ). Thus if the occupancy is large, with >> 1, the fractional fluctuations are of the...

Find a tormula for the general term of each of the following sequences (a) 5, 9, 13, 17, 21, ... (b) 7, 12, 17, 22, 27, ... (c) 2, 8, 14, 20, 26, ... (d) 1, 4, 7, 10, 13, ...

The Cameron Corporation manufactures custom-made purses. The following data pertains to Job XY5: Direct materials placed into production..$4,000 Direct labor hours worked50 hours Direct labor rate...

Which employee payroll tax deduction should the employer match 100%? a. FICA b. FIT c. FUTA d. SUTA

A dog chasing a ball starts at rest and accelerates uniformly over a distance of 5 meters. It takes the dog 1 s to cover that first 5 m. What is the dogs acceleration?

Outstanding stock of the Crevusse Corporation included 40,000 shares of $5 par common stock and 20,000 shares of 5%, $10 par noncumulative preferred stock. In 2016, Crevusse declared and paid...

Find all First Order Partial Derivatives for the following 1. f(x, y,z) 4xy2-ey +4y-6 2. W cOS 3. f(u, v. p.t)8u'tp-v p'r +2ut+3p- 4. f(u.v)u sin(u+v)- sec (4u) tan (2v) 2x 3z e x 5. f(x, z) 4z 7x...

Ask an Expert Circuit Masters Incorporated ( CMI ) is presently operating at 8 0 \ % of capacity and manufacturing 1 2 5 , 0 0 0 units of a patented electronic component. The cost structure of the...

Go to the web site of macrotrends (macrotrends.net) and click the S&P 500 90 year historical chart. Describe how stock prices move just before, during, and just after a recession. Is the pattern the...

Go to the web site of the Federal Reserve Bank of St. Louis (FRED) (fred.stlouisfed.org) and download to the same graph the following data series from January 1957 until the most recent available...

If you own a bond and market interest rates increase, will you experience a capital gain or a capital loss? Briefly explain.

One of the music industrys most pressing questions is: Can paid download stores contend nose-to-nose with free peer-to-peer download services? Data gathered over the last 12months show Apples iTunes...

The null and alternate hypotheses are: H0: 1 = 2 H1: 1 > 2 A random sample of 20 items from the first population showed a mean of 100 and a standard deviation of 15. A sample of 16 items for the...

Listed below are the 25 players on the opening-day roster of the 2013 New York Yankees Major League Baseball team, their salaries, and fielding positions. Sort the players into two groups, pitchers...