Monday, 4 November 2019

You may need to use the CME Group website to find information on the contract specs and margin amounts

You may need to use the CME Group website to find information on the contract specs and margin amounts to complete this assignment
On September 30 you established a long futures position on four May 20 corn futures at 391’0.
  1. 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)
  1. 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




10/1
409’4




10/2
404’6




10/3
406’0




10/4
402’4




On September 30 you established a short hedge for 160,000 pounds of live cattle that you will be selling in May 20. To hedge the sale of the live cattle went short the June 20 live cattle futures that were trading at 116.850.
  1. 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)
  1. 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




10/1
111.225




10/2
112.150




10/3
112.450




10/4
112.150





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