Demonstrate how a margin account operates for both the long and the short futures position using the following information ( you do not need to adjust the values given for contract size or number of contracts) The initial margin is R30 The initial future price is R100 On day 1 the price drops to R90 On day 2 the price rises to R95. Fill in the correct monetary values for the margin account values (a) through to (f) in your answer booklet.Take care to show the signs (negative and positive) of your cash flows
Demonstrate how a margin account operates for both the long and the short futures position using the following information ( you do not need to adjust the values given for contract size or number of contracts) The initial margin is R30 The initial future price is R100 On day 1 the price drops to R90 On day 2 the price rises to R95. Fill in the correct monetary values for the margin account values (a) through to (f) in your answer booklet.Take care to show the signs (negative and positive) of your cash flows
Chapter5: Currency Derivatives
Section: Chapter Questions
Problem 3BIC
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Demonstrate how a margin account operates for both the long and the short futures position using the following information ( you do not need to adjust the values given for contract size or number of contracts)
The initial margin is R30
The initial future price is R100
On day 1 the price drops to R90
On day 2 the price rises to R95.
Fill in the correct monetary values for the margin account values (a) through to (f) in your answer booklet.Take care to show the signs (negative and positive) of your cash flows
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