1.You sell a futures contract at a price of $245. You are required to pay an ini

Question

1.You sell a futures contract at a price of $245.  You are required to pay an initial margin of $100.  On the first day of trading after you sell the contract, the price falls to $180.  How much do you have to pay by the following day when your position is "marked to market"?

a) $0. (b) $15 (c) $65 (d) $180

You sell a futures contract at a price of $245.  You are required to pay an initial margin of $100.  On the first day of trading after you sell the contract, the price went to $280.  How much do you have to pay by the following day when your position is "marked to market"?

a) $0. (b) $15 (c) $65 (d) $180

how to analysis this question

You buy a futures contract at a price of $245.  You are required to pay an initial margin of $100.  On the first day of trading after you sell the contract, the price falls to $180.  How much do you have to pay by the following day when your position is "marked to market"?

a) $0. (b) $15 (c) $65 (d) $180

You buy a futures contract at a price of $245.  You are required to pay an initial margin of $100.  On the first day of trading after you sell the contract, the price went to $280.  How much do you have to pay by the following day when your position is "marked to market"?

a) $0. (b) $15 (c) $65 (d) $180

can you explain me this question

Explanation / Answer

1)a ie nil since you have sold the instrument and transaction is over at your end

2) a : same explanation as above

3)c ie 65 ie 245-80

4) 0 since market price has itself risen

Related Questions

Navigate

• Browse (All)
• Browse 1
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.