On January 1st you went long in a 3-month forward contract o…
On January 1st you went long in a 3-month forward contract on 5,000 bushels of wheat at $6.85 per bushel. At maturity on April 1st, the spot price is $8.50 per bushel. What cash settlement from long to short (or short to long) will fairly settle the contract without the involvement of actual wheat?
Read DetailsYou entered into TWO LONG CME euro futures contracts on €125…
You entered into TWO LONG CME euro futures contracts on €125,000 EACH (€250,000 total) at today’s bid price of $1.01/€. Your initial performance bond was $12,500 per contract and your maintenance margin is $2,100 per contract. At the end of the first trading day the contract settles at $1.05000/£. Your total gains or losses are closest to:
Read DetailsYou entered into TWO LONG CME euro futures contracts on €125…
You entered into TWO LONG CME euro futures contracts on €125,000 EACH (€250,000 total) at today’s bid price of $1.01/€. Your initial performance bond was $12,500 per contract and your maintenance margin is $2,100 per contract. At what settle price do you get a margin call?
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