Solution-Compute the balance in your margin account

Compute the balance in your margin account

Assignment Help Accounting Basics

Reference no: EM131095980

Gold contracts

Marking-to-Market You are long 10 gold futures contracts, established at an initial settle price of $785 per ounce, where each contract represents 100 ounces. Your initial margin to establish the position is $2,025 per contract, and the maintenance margin is $1,700 per contract.
Over the subsequent four trading days, gold settles at $779, $776, $781, and $787, respectively.

Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement.

Reference no: EM131095980

Questions Cloud

How financial information be consistent but not comparable : How can financial information be consistent but not comparable? When might an amount on material to management but not to the CPA auditing the financial statements?

What is the probability of attending college : People are not borrowing constrained what is the probability of attending college? Suppose there are hard borrowing constraints so that you can't borrow at all when going to college. What is the probability of going to college

Initial purchase price for the computer itself : You will have to factor in a few added costs beyond just the initial purchase price for the computer itself, such as: added hardware (this could include a new printer, docking station, or scanner), software (purchase of a new operating system), tr..

Distributed among farmer-speculator-builder and homeowner : A piece of land has a market value of $2000 per acre, if used for agricultural purposes. A land ‘speculator’ buys the land, paying $3000 an acre. Five years later she sells it to a house builder for $7,000 an acre. Assuming the land market and housin..

Compute the balance in your margin account : Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period.

Managing the pressures to multitask : Access www.fastcompany.com/magazine/87/projectmanagement.html or a library article or peer-reviewed journal on project management and multi-tasking. What suggestions does the author offer for managing the pressures to multitask?

Define and identify maximum fish stock-zero fish stock : Following class discussions and the text, provide a fully labelled graphical illustration of the theoretical relationship between fishing effort and revenue. Define and identify maximum fish stock, zero fish stock, maximum sustainable yield, the soci..

How the recent economical trends surrounding the company : The descriptive part should be minimal, while a larger portion should be devoted to explaining how the recent economical trends and competitive landscape surrounding the company have been used in your report.

Working on an international project : Why is it important to honor the customs and traditions of a country when working on an international project?

User Account

All Pages

Compute the balance in your margin account

Reference no: EM131095980

Reference no: EM131095980

Questions Cloud

Reviews

Write a Review

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Coures:- fundamental accounting principles

Accounting problems

Theory of interest - term structure of interest rates

Write a report on internal controls

Prepare the bank reconciliation for company

Cost-benefit analysis

Theory of interest

Liquidity and profitability

What is the expected risk premium on the portfolio

Simple interest and compound interest

Capm and venture capital

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT