On September 30 you established a long futures position on four May 20 corn futures at 391’0.
- How much money did you need to deposit into your margin account to establish this long position? Remember to include the Maintenance volume scan. (10 points)
- Given the information complete the table. The margin account balance should be after any daily gains or margin calls are deposited into your margin account. (20 points)
Date |
Settle Price |
Daily Gain/Loss per bu |
Total Daily Gain/Loss ($) |
Amount of Margin Call (If any) |
Margin Account Balance (after any margin calls) |
9/30 |
405’2 |
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10/1 |
409’4 |
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10/2 |
404’6 |
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10/3 |
406’0 |
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10/4 |
402’4 |
- How many June 20 live cattle futures contracts did you need for the 160,000 pounds? How much money did you need to deposit into your margin account to establish this short position? (10 points)
- Given the information complete the table. The margin account balance should be after any daily gains or margin calls are deposited into your margin account. (20 points)
Date |
Settle Price |
Daily Gain/Loss per lb |
Total Daily Gain/Loss ($) |
Amount of Margin Call |
Margin Account Balance |
9/30 |
111.425 |
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10/1 |
111.225 |
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10/2 |
112.150 |
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10/3 |
112.450 |
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10/4 |
112.150 |