Question

Today's settlement price on a Chicago Mercantile Exchange (CME) yen futures contract is $0.9011/¥100. Your margin account currently has a balance of $3,000. The next three days' settlement prices are $0.9057/¥100, $0.8596/¥100, and $0.8083/¥100. (The contractual size of one CME yen contract is ¥12,500,000). If you have a long position in one futures contract, the changes in the margin account from daily marking-to-market will result in the balance of the margin account after the third day to be

Answer #1

Today's settlement price on a Chicago Mercantile Exchange (CME)
Yen futures contract is $0.8623/¥100. Your margin account currently
has a balance of $1,487. The next three days' settlement prices are
$0.8651/¥100, $0.8647/¥100, and $0.8657/¥100. (The contractual size
of one CME Yen contract is ¥12,000,000). If you have a short
position in one futures contract, then what will the balance of the
margin account be after the third day?
Show you workings and the correct answer as follows in the space...

Today's settlement price on a Chicago Mercantile Exchange (CME)
€ futures contract is $1.8500/€. Your initial performance bond is
at $1800. The maintenance performance bond is $1,200. The next
three days' settlement prices are $1.930/€, $1.7292/€, and
$1.8985/€. (The contractual size of one CME € contract is €62,500).
If you have a long position in one futures contract (sell €), the
daily marking-to-market will result in the balance of the margin
account after the third day to be A. $12,381.25...

Today's settlement price on the Chicago Mercantile Exchange
(CME) Yen Futures contract is $0.8011/Y100.
Margin account balance is $2000.
Next 3 days' settlement prices are:
Day 1: $0.8057/Y100
Day 2: $0.7996/Y100
Day 3: $0.7985/Y100
(The contractual size of one CME Yen contract is Y12,500,00)
If you had a SHORT POSITION what would the changes in your account
balance be:
Day 1: ?
Day 2: ?
Day 3: ?
What would the balances be per day if you had a LONG...

Today's settlement price on a Chicago Mercantile Exchange (CME)
€ futures contract is $1.7537/€. Your initial performance bond is
at $2,000. The maintenance performance bond is $1,600. The next
three days' settlement prices are $1.7670/€, $1.7219/€, and
$1.6985/€. (The contractual size of one CME € contract is €62,500).
You take a long position in one futures contract (buy €), what is
the total additional fund you need to deposit so that you keep your
marginal account for the three days?...

Assume today’s settlement price on a Chicago mercantile exchange
futures contract is $1.3140/EUR. You have a short position in two
contracts. Your margin account currently has a balance of $3,400.
The next three days’ settlement prices are $1.3126, $1.3133 and
$1.3049. Calculate the changes in the margin account from daily
marking-to-market and enter the balance of account after the third
day. The contract size of one EUR contract is EUR 125,000
The account balance will be? SHOW YOUR WORK

Assume that today’s settlement price on a CME EUR futures
contract is the open price. Your performance bond account currently
has a balance of $1700. The next three days settlement prices are
+1%, +2% and -2% from today’s open price. Calculate the changes in
the Performance bond account from daily marking to market and the
balance of the performance bond account after the third day.
Provide calculations where necessary to support your answer.

Assume that today’s settlement price on a CME EUR futures contract
is the open price. Your performance bond account currently has a
balance of $1700. The next three days settlement prices are +1%,
+2% and -2% from today’s open price. Calculate the changes in the
Performance bond account from daily marking to market and the
balance of the performance bond account after the third day.
Provide calculations where necessary to support your answer.
Summarize and explain your findings. Please provide...

Assume today’s settlement price on a CME EUR futures contract is
$1.30/€. The contract is written on €125,000 and you have a long
position in one contract. The initial performance bond is $6,500,
and the maintenance performance bond is $4,000.
a. On day 1, the settlement price became $1.27/€, what
is your performance bond account balance at end of day 1? Are you
subjected to margin call? If yes, how much additional funds do you
need to deposit in order...

A trader enters into a short forward contract on 100 million
yen. The forward exchange rate is $0.008 per yen. How much does the
trader gain or lose if the exchange rate at the end of the contract
is (a) $0.0074 per yen; (b) $0.0091 per yen? 5. A cattle farmer
expects to have 120,000 pounds of live cattle to sell in three
months. The live-cattle futures contract on the Chicago Mercantile
Exchange is for the delivery of 40,000 pounds...

A U.S. firm is receiving 185m JPY in 3 months’ time. JPY Futures
are available on the Chicago Mercantile Exchange (CME) with a
contract size of 12,500,000 JPY and currently trade at 0.009502
JPY/USD. The contract maintenance margin is 3600 USD with an
initial margin of 110% of the maintenance margin.
a) Describe the firm’s FX spot market currency exposure
(long/short, size of exposure) before hedging.
b) Describe how this firm would hedge its position using futures
contracts.
c) How...

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