If the initial speculative margin of a futures contract is $2,000, the maintenance margin is $1,800 and your trading account balance has increased to $2,300, how much must you deposit to comply with your margin requirement?
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If the initial speculative margin of a futures contract is $2,000, the maintenance margin is $1,800 and your trading account balance has increased to $2,300, how much must you deposit to comply with your margin requirement?
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- Suppose that you enter into a short futures contract to sell July silver for $17.20 per ounce. The size of the contract is 5,000 ounces. The initial margin is $4,000, and the maintenance margin is $3,000.What change in the futures price will lead to a margin call?What happens if you do not meet the margin call?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 €. CorrectA trader takes a view that March KLSE CI futures which are currently trading at 1188.60 are about to enter a downtrend. Should the trader go long or short futures. Assuming the trader maintains their original position until expiry and the cash settlement price is 1185.40, what will be the profit or loss? The contract size is RM50 per contract.
- A one-year gold futures contract is selling for $1,247. Spot gold prices are $1,200 and the one-year risk-free rate is 2%. a) According to spot-futures parity, what should be the futures price? b) What risk-free strategy can investors use to take advantage of the futures mispricing, and what would be the profits from that strategy?Consider a hypothetical futures contract where the current price is $ 212. The initial margin requirement is $ 10 and the maintenance margin requirement is $ 8. You enter into long 20 contracts and meet all margin requirements, but do not withdraw any excess margin. B. Complete the table below and explain all deposited funds. Suppose the contract was purchased at the settlement price of that day, so there is no gain or loss at current market prices on the day of purchase. C. What is your total profit or loss by the end of Day 6?The following table shows the futures price data today for Commodity X, and you purchased a futures contract today at the settlement price. (Contract size : 30,000 kg of Commodity X) Open High Low Settlement Change Open Interest Today $16.28 $16.33 $16.25 $16.29 $(0.02) 6,338 Calculate the total value of this futures contract. If the initial and maintenance margin requirements are 15% and 10% of the contract value respectively, calculate the amount of deposit required to execute this contract. If the prices of the commodity X in the next 3 trading days are : $16.27, $16.40 and $16.97, calculate the profit/loss per kilogram of commodity X, total value of the contract, and the mark-to-market settlement. If additional margin is required, indicate when it is necessary and the additional deposit amount.
- Suppose an investor takes a long position in 1 Gold futures contract, and the following information is given: Contract size = 100 ounces. Futures price = $500 Initial margin = $3,000 per contract. Maintenance margin = $2,000 per contract Date Jan. 1 Jan. 2 Jan. 3 Jan. 4 Jan. 5 Jan. 6 Jan. 7 Jan. 8 Future prices 494 495 488 490 491 474 475 474 i) In which days will there be a margin call? How much will be the variation margin in all cases? ii) In which days do the balances in the margin account exceed the initial margin? B) Party A agrees to pay Party B a fixed rate of 4%. Party B agrees to pay Party A a floating rate based on the return of the S&P 500 Index. The payments will be made annually and will be based on a notional principal of $1,000,000. i) Suppose at the end of the first year, the S&P 500 appreciated by 4.5%. How much will Party B will pay Party A II) What will happen in the second year, if the S&P 500 depreciated…An index level of 1,000, what is the value of each contract? If a long stock index futures position on S& P 500 index futures at 1, 051 and has an index of 1, 058 at the settlement date, how much would be the trader’s gain? Complete Solution.Suppose that you purchase a Treasury bond futures contract at $95 per $100 of face value. What is your obligation when you purchase this futures contract? If an FI purchases this contract, in what kind of hedge is it engaged? Assume that the Treasury bond futures price falls to 94. What is your loss or gain? Assume that the Treasury bond futures price rises to 97. Mark your position to market.
- Suppose we enter into a 76-day T-bill futures contract quoted at 0.021. The notional amount is $1,000. What is the actual price?Suppose you buy a December futures contract on a hypothetical 10-year, 6% semiannualcoupon note with a settlement price today of 125-060. You post the initialmargin required for this transaction ($1,430 per $100,000 contract). What nominalannual yield to maturity is implied by the settlement price? If interest rates fall to2.4%, what return would you earn on one futures contract? If interest rates rose to3.2%, what is the return on one futures contract?If you buy a put option on a $100,000 Treasure bond futures contract with an exercise price of 97 and the price of the Treasury bond futures is 130 at expiration, is the contract in the money, out of the money or at the money? What is your profit or loss on the contract if the premium was $5,000? The exercise price and the futures price are quoted in points and each point is $1,000.