Question: What is the initial performance bond for a U.S. speculator going long on Yen through a contract for 12,500,000 when the exchange rate is 104/$

What is the initial performance bond for a U.S. speculator going long on Yen through a contract for 12,500,000 when the exchange rate is 104/$ and the initial bond requirement is 2.5% of the notional amount?

A.3,500,000

B.$12,500

C.$300,500

D.$3,005

E.None of the above

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!

Financial Engineering ASSIGNMENT A QI. A swap bank has to entail certain risks which are inherent to the swap business and are interrelated Explain the risks involves in swap business. Q2. Call...

6. Yesterday, you entered into a futures contract to sell 62,500 at $1.50 per . Your initial performance bond is $1,500 and your maintenance level is $500. At what settlement price will you get a...

Hi there I need help answering ASSIGNMENT 1 ONLY by Friday afternoon. I have attached the study pack to help answer the question. Thanks! FIN4802 ASSIGNMENTS ASSIGNMENT 01 Due date: 13 May 2016...

Evaluate the potential gains and losses for forwards,future,call options,put options and swaps. Outline and describe the different risks that each type of derivative contract faces. Describe...

Question: find the NPV, fill the rest of the table base on the provided case study. I attached 2 excel tables wich some numbers calculated and need the other number to find out base on the tables...

12) The following is an example of an American term foreign exchange quote: A) $20/. B) 100/. C) 0.85/$. D) None of the above. 13) From the viewpoint of a British investor, which of the following...

1. A well-established, large, Indian-based MNE will probably be most adversely affected by which of the following elements of firm value? a. access to qualified labor pool b. an open marketplace c....

Assignmentsfrom ESM Chapter 5 Questions:6, 8 and 13 Problems:3, 6, and 12. InternetExercise: 1 Assignmentsfrom ESM Chapter 6 Questions:3 and 17 Problems:3, 10, and 22 InternetExercise: 1...

where can I find the answers to case 6-1? (i downloaded this from CourseHero) CHAPTER 6 Foreign Currency Translation Examine the following financial performance commentary. It is extracted from Rio...

Rule 4.3A Appendix 4E Preliminary Final Report Name of entity FARM PRIDE FOODS LTD ABN or equivalent company reference: 1. 42 080 590 030 Reporting period Report for the financial year ended 30 June...

Differentiate between an ordinary annuity and an annuity due. How is the future value of an ordinary annuity calculated, and how (for the same cash flows) can it be converted into the future value of...

Aship leaves port on a bearing of 42.0 and travels 10.5 mi The ship then tums due east and travels 4.9 mi. How far is the ship from port, and what is its bearing from port? The ship ismi from the...

In 2 0 2 3 , Joshua gave $ 1 5 , 1 0 0 worth of Nvidia stock to his son. In 2 0 2 4 , the Nvidia shares were worth $ 2 0 , 5 0 0 . What was the gift tax in 2 0 2 4 ? Gift tax

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".