6. Question 6 [Total: 20 marks] &

6. Question 6 [Total: 20 marks]

Please discuss how “variation margin” and “margin call” are related in the context of daily settlement procedure.

[10 marks]

b) What are the most important aspects of the design of a new futures contract?

[10 marks]

Solutions

Expert Solution

Appreciate your feedback

jeff jeffy answered 1 year ago

Next > < Previous

Related Solutions

QUESTION 6 (20 Marks) 6.1 Briefly discuss the main components of total spending in the economy....

QUESTION 6 6.1 Briefly discuss the main components of total spending in the economy. 6.2 Identify the THREE (3) main withdrawals (or leakages) from the circular flow of income and spending in an open economy. 6.3 Explain with examples, the following: 6.3.1 Constant returns to scale. 6.3.2 Increasing returns to scale. 6.3.3 Decreasing returns to scale.

QUESTION 3 (14 marks) (Total 20 marks) A. Undeniably, profitability is the ultimate goal of companies...

QUESTION 3 (Total 20 marks) A. Undeniably, profitability is the ultimate goal of companies and readers of a company’s financial statements are very much interested in the reported profit figure. The profit figure is achieved by the preparation of the statement of profit or loss and the statement of financial position. If the foregoing is the 3 case, why then bother about the statement of cash flows? B. Globally, accounting standards are developed based on different methods. It is generally...

Question 3 (20 Marks) Part A (6 marks) XYZ Windows Ltd is involved in a research...

Question 3 Part A XYZ Windows Ltd is involved in a research and development project to create a filtering window that removes the need for curtains. For the current year ended 30 June 2020 expenditure on the project is as follows: Research $235,000 Development $500,000 The window is expected to return profits of $70,000 per year for the 10 years commencing 1 July 2020. Assuming the company uses a straight-line method amortisation. This company uses a discount rate of 8...

Question 3.3 (Total: 45 marks; part 1: 24 marks; part 2: 15 marks; part 3: 6...

Question 3.3 (Total: 45 marks; part 1: 24 marks; part 2: 15 marks; part 3: 6 marks) Star Finder Inc. has provided the following information for the year ended December 31, 2021: Sales revenue $1,300,000 Loss on inventory due to decline in net realizable value $80,000 Unrealized gain on FV-OCI equity investments 42,000 Loss on disposal of equipment 35,000 Interest income 7,000 Depreciation expense related to buildings omitted by mistake in 2020 55,000 Cost of goods sold 780,000 Retained earnings...

Question 1: Budget (20 marks in total) You are now preparing the budget for the Sheep...

Question 1: Budget (20 marks in total) You are now preparing the budget for the Sheep Drench department for the months of April and May. Sheep Drench manufacturing costs have been budgeted as follows: Direct materials $ 3.0 per unit Direct labour $ 1.5 per unit Factory overhead Variable $ 0.25 per unit Fixed $ 5,000 per month (Includes $1000 depreciation) Selling and administrative expenses, including depreciation of $400 per month, are all fixed and total $2500 per month. Other...

Question 5: Relevant information for decisions (20 marks in total) The development of a new pesticide...

Question 5: Relevant information for decisions (20 marks in total) The development of a new pesticide for the horticultural industry has been successful. David is now discussing with you, options to expand operations to include this new line of pesticide, Microcide. A key issue is whether to make one of the components of the pesticide, Factor X, or to buy it in. Demand for the next 12 months is expected to be 200,000 litres. Costs if FOL makes all the...

Question 5: Relevant information for decisions (20 marks in total) The development of a new pesticide...

Question 5: Relevant information for decisions (20 marks in total) The development of a new pesticide for the horticultural industry has been successful. David is now discussing with you options to expand operations to include this new line of pesticide, Microcide. A key issue is whether to make one of the components of the pesticide, Factor X, or to buy it in. Demand for the next 12 months is expected to be 200,000 litres. Costs if FOL makes all the...

Question 1: An overview of management accounting (20 marks in total) 1a. Describe and explain the...

Question 1: An overview of management accounting (20 marks in total) 1a. Describe and explain the differences between management accounting and financial accounting. 1b. Describe and explain the major functions of management accounting and give examples. 1c. Using your textbook and other relevant references, explain how concepts such as panopticism, control, and discipline may be relevant to management accounting, give examples.

QUESTION 3 (20 MARKS) QUESTION 3 (20 MARKS) An analysis of the Business School graduates found...

QUESTION 3 QUESTION 3 An analysis of the Business School graduates found that 210 out of 318 randomly selected graduates used An analysis of the Business School graduates found that 210 out of 318 randomly selected graduates used a statistical inference technique during their first year of employment.a statistical inference technique during their first year of employment. (a) Calculate a 90% confidence interval for the proportion of graduates who used a statistical inference (a) Calculate a 90% confidence interval for the...

Total Marks 20 Question 1 The core element of the Growth Employment and Redistribution (GEAR) strategy...

Total Marks 20 Question 1 The core element of the Growth Employment and Redistribution (GEAR) strategy of the South African government in 1996, under the leadership of then finance minister Trevor Manuel were amongst other things: * budget reform to strengthen redistributive thrust of expenditure * monetary policy to prevent a resurgence of inflation * a reduction in tariffs to contain input price and facilitate industrial restructuring, compensating partially for the exchange rate depreciation 1.1 With reference to the above,...

Subjects