You take a short position in 3 futures contracts on WIG20 on the Warsaw Stock Exchange. The current contract price is 2023. The maintenance margin is 6.5% of the contract value and the initial margin is 15% higher than the maintenance margin. What amount do you need to deposit in the margin account when you take the position? Remember the correct multiplier for these contracts on the WSE. a) 3024.38 PLN. b) 453.66 PLN. c) 4536.58 PLN. d) 9073.15 PLN.

You take a short position in 3 futures contracts on WIG20 on the Warsaw Stock Exchange. The current contract price is 2023. The maintenance margin is 6.5% of the contract value and the initial margin is 15% higher than the maintenance margin. What amount do you need to deposit in the margin account when you take the position? Remember the correct multiplier for these contracts on the WSE. a) 3024.38 PLN. b) 453.66 PLN. c) 4536.58 PLN. d) 9073.15 PLN.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume today’s settlement price on a CME EUR futures contract is $1.3144 per euro. You have a short position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond account currently has a balance of $1,900. The next three days’ settlement prices are $1.3130, $1.3137, and $1.3053. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day. Required: Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Assume today's settlement price on a CME EUR futures contract is $1.3140 per euro. You have a long position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond account currently has a balance of $1,700. The next three days' settlement prices are $1.3126, $1.3133, and $1.3049. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day. Required: Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Balance of the performance bond account
This morning (Day 0) you take a short position in a pound futures contract that matures in 3 days (Day 3). The future price is $1.9750 today. The contract size is £62,500 and its initial performance bond and maintenance bond are $2,430 and $1,830, respectively. a. (b) Assuming that the daily settlement prices are indicated below, how would the daily change in settlement future prices affect your account? Show the daily gain/loss and account balance. Day 0 1 2 3 Settlement 1.9750 1.9700 1.9815 1.9907 Total Gain/Loss Account Balance b. During this period, did you receive a margin call? If you did, on what day? c. At the end of Day 3, how much in total did you make/lose on this futures contract?
Assume today's settlement price on a CME EUR futures contract is $1.3154 per euro. You have a short position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond account currently has a balance of $2,400. The next three days' settlement prices are $1.3140, $1.3147, $1.3063. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day. Required: Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Balance of the performance bond account
Assume today's settlement price on a CME EUR futures contract is $1.1140/EUR. You have a short position in one contract with a standard contract size of 125,000€. Your performance bond account currently has a balance of $2,000. The next three days' settlement prices are $1.1126, $1.1133, and $1.1050. Calculate the balance of the performance bond account after the third day.
Assume that today's settlement price on a CME EUR futures contract is $1.1145/EUR. You have a long position in one contract. Your margin balance is currently of $2,763. The next three days' settlement prices are $1.1144, $1.1141, and $1.1148. Calculate the balance in the margin account after the third day due to dailly mark-to-market. The size of a futures contract on the euro is EUR125,000. Note: Enter your answer rounded to the nearest dollar. For example, if the calculated balance on the margin account after the third day of mark-to-market is $2,475.80, enter it as: 2476 or 2,476.
Yesterday, you entered into a futures contract to buy €62,500 at $1.50 per €. Your initial performance bond is $1,500 and your maintenance level is $500. At what settle price will you get a demand for additional funds to be posted? ANSWER D IS CORRECT BUT WHAT IS THE PROCEDURE BUT HOW DO I GET THERE? a) $1.5160 per €. b)$1.208 per €. c)$1.1920 per €. d)$1.4840 per €. Correct
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Assume that today the euro futures contracts with a September 15th delivery date are priced at $1.3680/€ . Suppose that you sold 15 contracts of the euro futures today. If, by September 15th the spot rate is $1.3260/€ , your total profit/loss on your position is (the euro futures contract size is €125,000). $78,750 loss $78,750 gain €78,750 loss €5,250 loss None of the abov
Refer to the Mini-S&P contract in Figure 22.1. Assume the closing price for this day.a. If the margin requirement is 23% of the futures price times the contract multiplier of $50, how much must you deposit with your broker to trade the March maturity contract? (Round your answer to the nearest whole dollar.)Required margin depositb. If the March futures price increases to 2594.70, what percentage return will you earn on your investment if you entered the long side of the contract at the price shown in the figure? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Percentage return on net investment%c. If the March futures price falls by 1%, what is your percentage return? (Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to 2 decimal places.)Percentage return on net investment%
Futures Contracts | WSJ.com/commodities Metal & Petroleum Futures Contract Open High hi lo low Copper-High (CMX)-25,000 lbs.; $ per lb. Contract Open Open High hi lo low Settle Chg interest Open Coffee (ICE-US)-37,500 lbs.; cents per lb. Settle Chg interest Dec 194.00 205.55 192.95 204.05 10.05 129,6% March 22 196.95 208.35 195.80 206.90 10.10 70,796 Sugar-World (ICE-US)-112,000 lbs.; cents per lb. Oct 4.1500 4.2030 4.1500 Dec 4.1065 4.2030 4.0585 4.1885 40.1935 0.1035 0.0995 2,734 109,717 March 20.31 20.35 20.02 20.06 -.28 420,744 May 19.72 19.75 19.48 19.53 .23 156,809 Oct Gold (CMX)-100 troy oz.; $ per troy oz. 1754.30 1762.60 1748.50 Sugar-Domestic (ICE-US)-112,000 lbs.; cents per lb. 1757.00 1.70 Nov 1755.90 1764.30 1750.00 1757.70 1.40 4,163 1,093 Nov 37.00 37.01 37.00 37.00 -.05 1,265 March'22 36.00 36.01 36.00 36.00 -.10 2,819 Dec 1757.20 1765.20 1749.90 1758.40 1.40 407,321 Feb 22 1759.10 1766.40 1751.60 1760.10 1.60 46,135 Cotton (ICE-US)-50,000 lbs.; cents per lb. Oct Oct…

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