Question

In: Finance

Question 2-7 are based on the following series of futures price (F(0), F(1),... F(6)): Day 0:...

Question 2-7 are based on the following series of futures price (F(0), F(1),... F(6)):

Day 0: F(0)=$212

Day 1: F(1)=$211

Day 2: F(2)=$214

Day 3: F(3)=$209

Day 4: F(4)=$210

Day 5: F(5)=$202

Day 6: F(6)=$200

Suppose you are going to long 20 contracts. The initial margin=$10 per contract, and the maintenance margin is $2.

Questions:

How much do you need to deposit in the trading account at Day 0?

Using the same set of information from Question 2, what is the ending balance in Day 1?

Using the same set of information from Question 2, figure out what is the first day, on which, you receive margin call and need to put extra money into the trading account?

Using the same set of information from Question 2, answering what is the additional fund that needs to put into account on Day 6?

Using the same set of information from Question 2, answering what is the ending balance at Day 6?

Using the same set of information from Question 2, answering which day has the largest gain among the 6 days?

Solutions

Expert Solution

1. Amount Required to deposit in trading account on day 0 = 20 *$10 = $200

2. Ending Balance in Day 1 = $180

3. Amount of Margin call = 0

4. Additional fund that needs to put in to the account on Day 6 = $40

5. Ending balance on day 6 = $40

6. Day 2 has the largest gain among the 6 days

Formula spreadsheet


Related Solutions

Question 2-7 are based on the following series of futures price (F(0), F(1),... F(6)): Day 0:...
Question 2-7 are based on the following series of futures price (F(0), F(1),... F(6)): Day 0: F(0)=$212 Day 1: F(1)=$211 Day 2: F(2)=$214 Day 3: F(3)=$209 Day 4: F(4)=$210 Day 5: F(5)=$202 Day 6: F(6)=$200 Suppose you are going to long 20 contracts. The initial margin=$10 per contract, and the maintenance margin is $2. First Question from the set of information: how much do you need to deposit in the trading account at Day 0? Using the same set of...
Question 1-6 are based on the following series of futures price (F(0), F(1),... F(6)): Day 0:...
Question 1-6 are based on the following series of futures price (F(0), F(1),... F(6)): Day 0: F(0)=$212 Day 1: F(1)=$211 Day 2: F(2)=$214 Day 3: F(3)=$209 Day 4: F(4)=$210 Day 5: F(5)=$202 Day 6: F(6)=$200 Suppose you are going to long 20 contracts. The initial margin=$10 per contract, and the maintenance margin is $2. 1) from the set of information: how much do you need to deposit in the trading account at Day 0? 2) Using the same set of...
Find f(x) for the following function. Then find f(6), f(0), and f(-7). f(x)=-2x^2+1x f(x)= f(6)= f(0)=...
Find f(x) for the following function. Then find f(6), f(0), and f(-7). f(x)=-2x^2+1x f(x)= f(6)= f(0)= f(-7)=
The statements in this question are based on the following data: X 2:6 2:6 3:2 3:0...
The statements in this question are based on the following data: X 2:6 2:6 3:2 3:0 2:4 3:7 3:7 PX D 21:2 Y 5:6 5:1 5:4 5:0 4:0 5:0 5:2 PY D 35:3The correlation coefficient .r/ was calculated as 0:327: Identify the incorrect statement. 1. There is a positive relationship between x and y. 2. N y D 5:043 3. The coefficient of determination is 0:5719: 4. The regression coefficient b1 is also positive. 5. Only 10.7% of the variation...
f ''(x) = −2 + 24x − 12x^2, f(0) = 7, f '(0) = 12
f ''(x) = −2 + 24x − 12x^2, f(0) = 7, f '(0) = 12
6 5 4 5 0 0 13 48 6 1 0 7 2 0 1 1...
6 5 4 5 0 0 13 48 6 1 0 7 2 0 1 1 0 2 11 5 11 27 4 0 6 Create Standard Deviation Chart (Normal Distribution Curve)
A= 1 0 -7 7 0 1 0 0 2 -2 10 -7 2 -2 2...
A= 1 0 -7 7 0 1 0 0 2 -2 10 -7 2 -2 2 1 Diagonalize the matrix above. That is, find matrix D and a nonsingular matrix P such that A = PDP-1 . Use the representation to find the entries of An as a function of n.
6. The function f(t) = 0 for − 2 ≤ t < −1 −1 for −...
6. The function f(t) = 0 for − 2 ≤ t < −1 −1 for − 1 ≤ t < 0 0 for t = 0 1 for 0 ≤ t < 1 0 for 1 ≤ t ≤ 2 can be extended to be periodic of period 4. (a) Is the extended function even, odd, or neither? (b) Find the Fourier Series of the extended function.(Just write the final solution.)
f(x,y) = 2/7(2x + 5y) for 0 < x < 1, 0 < y < 1...
f(x,y) = 2/7(2x + 5y) for 0 < x < 1, 0 < y < 1 given X is the number of students who get an A on test 1 given Y is the number of students who get an A on test 2 find the probability that more then 90% students got an A test 2 given that 85 % got an A on test 1
Let ?1 and ?2 have the joint pdf f (?1, ?2)= 6?2     0<?2<?1<1 =0 else where...
Let ?1 and ?2 have the joint pdf f (?1, ?2)= 6?2     0<?2<?1<1 =0 else where A. Find conditional mean and conditional variance ?1given?2 . B. Theorem of total mean and total variance?1given?2 .(urgently needed)
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT