Briefly describe what a futures contract is

Assignment Help Finance Basics
Reference no: EM131152551

1) Briefly describe what a futures contract is.

2) One futures contract on orange juice is equal to 15,000 lbs. of juice. Recently, the contract was trading at around $ 1.50/lb. If the initial margin for an orange juice contract is $1,890, approximately what is the leverage an investor enjoys by trading this commodity?

Reference no: EM131152551

Questions Cloud

How many shares must magenta sell : In addition to the underwriterAc€?cs fee, the firm will incur $1,000,000 in legal, accounting, and other costs. How many shares must Magenta sell?
Managers and financial teams face : At least 2 ethical issues that managers and financial teams face when preparing financial reports. What regulations should be considered when making a decision about each issue?
Determine the reactions at the supports if ei is constant : The fixed supported beam AB is strengthened using the simply supported beam CD and the roller at F which is set in place just before application of the load P .
Discuss each of the theories regarding public corruption : Explain in detail the "slippery slope" and its relationship to gratuities, using examples. Discuss each of the theories regarding public corruption that Delattre writes about in the textbook: Society-at-Large Hypothesis.
Briefly describe what a futures contract is : 1) Briefly describe what a futures contract is. 2) One futures contract on orange juice is equal to 15,000 lbs. of juice. Recently, the contract was trading at around $ 1.50/lb. If the initial margin for an orange juice contract is $1,890, approxi..
Is this hypocritical on the part of the government : Do you believe that the public has little regard for laws concerning gambling and prostitution - especially since gambling, in one form or another, is legal in every state, and prostitution is legal in Nevada?
Determine the support reactions at a b and c : The post at B has a diameter of 40 mm, and the moment of inertia of the beam is I = 875(106 ) mm4 . The post and the beam are made of material having a modulus of elasticity of E = 200 GPa.
Is the shareholder correct : Jimmy is the CEO of News Corp. His son, Johnny, runs Television Inc. A shareholder sues alleging that Jimmy violated his fiduciary duty of loyalty. Is the shareholder correct
Discuss issues that example raises about moral relativism : Imagine that a female friend of yours teaches English as a second language to a group of Southeast Asian students. Over the months she has developed an excellent rapport with the students. When she became pregnant, they were all happy for her and eve..

Reviews

Write a Review

 

Finance Basics Questions & Answers

  Prove to yourself that it does not matter the point in

you have won a contest and now must decide which prize you want. with prize a you receive 5000 today and another 5500

  Describe the five cs of credit used in evaluating the credit

Describe the five Cs of credit used in evaluating the creditworthiness of a credit applicant.

  How many years will it take to reach your goal

You have $42,180.53 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $250,000. You expect to earn 12% annually on the account. How many years will it take to reach your goa..

  Efficient capital structures for both manufacturing company

Identify the most efficient capital structures for both a manufacturing company and a software development firm. Provide a rationale for your response.

  Computation of net income and annual rate of return and npv

Computation of net income and annual rate of return and NPV and Continuing the previous problem and Apricot Company had sales

  Draw profit diagram for yourself and your counterparty

Suppose that you write a put contract with a strike price of $40 and an expiration date in 3 months. The current stock price is $41 and the contract is on 100 shares.

  Choose two 2 tech stock companies that attempted to make

create a ten to fifteen 10-15 slide powerpoint presentation be creative. be sure to use the speaker notes for the

  How does the current share price compare to what analysis

Note on the examples: Value Line has a very unique format. The data is there is some discussion of key factors. The other example(s) better reflect what your submission should be similar to. Normal 0 false false false EN-US X-NONE X-NONE

  What is the amount of the earnings

Kwik'n Hot Dogs is considering the installation of a new computerized pressure cooker that will cut annual operating costs by $23,000. The system will cost $39,900 to purchase and install. This system is expected to have a 4-year life and will..

  Stock option to be valuable

How is it possible for an employee stock option to be valuable even if the firm's stock price fails to meet shareholders' expectations?

  Eplain why the arguments leading to put-call parity for

explain why the arguments leading to put-call parity for european options cannot be used to give a similar result for

  Maximize financial value for shareholder

Is it possible for companies both to maximize financial value for shareholders and to act irresponsibly in the communities in which they operate,

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd