Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. question the current value of an s&r futures i

QUESTION The current value of an S&R futures is $1578.47 . You buy 5 futures...

90.2K

Verified Solution

Question

Accounting

image

QUESTION The current value of an S&R futures is $1578.47 . You buy 5 futures on the S&R and the contract size is $361. The margin is setled on a monthly basis and the margin is 14% of the notional value. Margin calls are made as soon as the margin is below 68% of the initial margin level . We assume that r = 3% and observe the following - futures prices Month 0 1 2 3 4 Futures Price $1578.47 $1386.14 $1301.64 $1469.44 $1446.61 Find the monthly margin balance @) at time 0. (b) at time 1. () at time 2. d at time 3. (e) at time 4

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

What is Art? An appreciation for a work of art is created by personal taste. Identify the...

Psychology
Q

Consider the IVP t2y''?(t2 + 2)y' + (t + 2)y = t3 with y(1) = 0...

Advance Math
Q

6 a A three phase 400 V 50 Hz a c supply is feeding a...

Physics
Q

2 5 point he starting quarterback for your high school team injured his shoulder at...

Basic Math
Q

Angelo makes x dollars for y hours ofwork. Sarah makes the same amount ofmoney working...

Basic Math
Q

Which of the following are equivalent to log 4 2 log 20 log 10 10...

Calculus
Q

Find the equation A y 2 sin x TI C y 2 sin x 2...

Algebra
Q

Entries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company uses a...

Accounting
Q

Many business incur net operating losses, especially in the early years of their existence. What...

Accounting
Q

Jay Rexford, president of Photo Artistry Company, was just concluding a budget meeting with his...

Accounting
Q

Prepare the operating activities section of the statement of cash flows using the direct method...

Accounting
Q

In the forward market, the selling of a currency at a spot rate (e.g., 1.30...

Accounting