All margin calls restore the margin level to its initial


Your broker requires an initial margin of $4,500 per futures contract on soybeans and a maintenance margin of $3,000 per contract. Soybean futures contracts are based on 5,000 bushels and quoted in cents per bushel. You LONG 8 wheat futures contracts at the closing settlement price quote of 1372 four days ago. Over the subsequent four trading days, soybean settles at 1361, 1337, 1365, and 1379, respectively. Compute and show the equity balance in your margin account at the end of each trading days, and compute your total profit or loss at the end of the trading period. All margin calls restore the margin level to its initial level.

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Financial Management: All margin calls restore the margin level to its initial
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