Question 5 Futures A gasoline distributor buys a gasoline futures contract that requires acceptance of 42,000 gallons of gasoline at £0.94 per gallon. How is the account marked to market if gasoline futures close the next day at £0.97? A. A loss of £1,260 is posted to the account. B. A gain of £1,260 is posted to the account. C. A loss of £12,600 is posted to the account. D. A gain of £12,600 is posted to the account.
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Question 5 Futures
A gasoline distributor buys a gasoline futures contract that requires acceptance of 42,000 gallons of gasoline at £0.94 per gallon. How is the account marked to market if gasoline futures close the next day at £0.97?
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- QUESTION 35 Show all work to receive credit You entered into a short CME futures contract on 125,000 euros at the day's opening price of $1.10 per euro. Your initial margin was 6,500 and your maintenance margin is $4,000. a. The settlement price one day after you open your position is $1.09 per euro. Calculate the balance on your margin account on this day. b. The settlement price two days after you open your position is $1.11 per euro. Calculate the balance on your margin account on this day. C. At what settle price do you get a margin call? For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac). B U S Paragraph Arial 14px AQuestion A .In April you bought two futures contracts on FOJC when the future price was US 286 cents per pound with an initial margin of US$5,000 per contract. Each contract is for delivery of 15,00 pounds. If your maintenance margin is US$3,750, what price change in FOJC would lead to a margin call? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this lineQuestion a An investor buys a 90-day promissory note at a yield of 9.120% p.a. and sells it 30 days laterat a vield of 8.925% p.a. What effective annua rate of return did the investor make? Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line . Fast
- Question I: Consider the widget exchange. Suppose that each widget contract has a market value of $0 and a notional value of $100. There are three traders, A, B, and C. Over one day, the following trades occur: . A long, B short, 5 contracts. • A long, C short, 15 contract. • B long, C short, 10 contracts. . C long, A short, 20 contracts. 1. What is each trader's net position in the contract at the end of the day? 2. What are trading volume, open interest, and the notional values of trading volume and open interest? 3. How would your answers in (1) and (2) have been different if there were an additional trade: C long, B short, 5 contracts? 4. How would you expect the measures in part (2) to be different if each contract had a notional value of $20?eBook Problem 29-02 The futures price of corn is $3.50 a bushel. Futures contracts for corn are based on 8,000 bushels, and the margin requirement is $2,000 a contract. You expect the price of corn to fall and sell the contract short. What is the value of the contract and how much must you initially remit? Round your answers to the nearest dollar. Value of the contract: $ Remit amount: $ If the futures price of corn rises to $3.60, what is the profit or loss on your position? Round your answer to the nearest dollar. Enter your answer as a positive value. The is $ . If the futures price of corn declines to $3.32, what is the profit or loss on your position? Round your answer to the nearest dollar. Enter your answer as a positive value. The is $ . If the futures price declines to $3.22, what may you do? Round your answer to the nearest dollar. The investor may remove up to $ from the account. How do you close your position? The investor closes the position by entering a…Title Subtifie dading Paragraph Styles A bank customer is going to London in June to buy £ 200000 in new inventory. The current spot and futures exchange rates are: spot: $1.510/£, June futures: $1.625/£. The customer takes a position in June futures to fully hedge her position. In June, the actual FX rate is $1.720/£. How much did she save?
- v Question Completion Status: QUESTION 1 Mr. A has to recive 5000 Euro after six month from a trader in Europe and he fear that the exchnage rate might change in this period. What can be done to manage this risk? O 1. Insurance O 2. Retention O 3. Options contract O 4. Both Insurance and retention QUESTION 2 A trader in Madina Munnawara produces dates and sells in the market. He fears that the prices of Dates might drop by the time the crop is ready for sale. he can use the following method to manage this risk. 1. Retention 2. None of these 3. Non-insurance transfer O 4. Insurance Save Al Click Save and Submit to save and submit. Click Save All Answers to save all answers. DEProblem 15-01 It is March 9, and you have just entered into a short position in a soybean meal futures contract. The contract expires on July 9 and calls for the delivery of 100 tons of soybean meal. Further, because this is a futures position, it requires the posting of a $2,000 initial margin and a $1,000 maintenance margin; for simplicity, however, assume that the account is marked to market on a monthly basis. Assume the following represent the contract delivery prices (in dollars per ton) that prevail on each settlement date: March 9 (initiation) April 9 May 9 June 9 July 9 (delivery) $175.00 182.50 190.00 184.50 177.75 a. Calculate the equity value of your margin account on each settlement date, including any additional equity required to meet a margin call. Fill in the table below. Round your answers to the nearest dollar. If your answer is zero, enter "0". March 9 Price $175.00 April 9 $182.50 May 9 $190.00 June 9 July 9 $184.50 $177.75 $ Margin Maintenance 1000 $ 이 1750 $ 2500…You write one Apple December 140 call contract on the CBOE for a premium of $4. You hold the option until the expiration date, when Apple stock sells for $141 per share. You will realize a on the investment. $200 profit $400 loss $300 profit $200 loss $100 gain
- Question 14 As of March 9, 2021, the price of GameStop Corp. (ticker: GME) is $246.90 and its closing price on March 10, 2020 is $4.23. You believe GME is overvalued and decide to short-sell GME. You have $112,380 worth of Treasury Bills in your brokerage account that can be used as collateral. Your broker requires an initial margin of 50% and a maintenance margin of 42%. You must also set aside 100% of the cash proceeds as collateral. You decide to short as many shares as you can with the collateral you have. Pay special attention that you cannot purchase/sell/trade fractional shares. How much cushion (in dollars) do you have before you receive a margin call from your broker? That is, by how much the stock price could move in the "wrong" direction before you receive a margin call? Enter a number with two decimal points.X MIDTERM EXAM FOR ALLS aIms.alasala.edu.sa/mod/quiz/re English (en) Question 16 Complete Marked out of 1.50 Rlag question If the nominal interest rate is 16.75%, find the effectivenual rate with quarterly compounding. Answer: 17.83 Question 17 Complete Marked out of 1.50 P Flag question You have $42910.53 in a brokerage account, and you plan to deposit an additional $12300 at the end of every future year until your account totals $257300. You expect to earn 14.5% annually on the account. How many years will it take to reach your goal? Answer: 15.51 Question 18 Complete Marked out of 1.50 P Flag question NUAWEPROBLEM 3. Spot price of crude oil is 83.84/bbl. The total interest rate on six-month loans and deposits is 0.84%. The storage cost is 0.33% of the asset value per month paid at the end of the storage period. Assuming no transaction cost, determine the no-arbitrage price for a crude oil futures contract maturing six months from now.