1. If you initial maintenance requirement is $5000 per contract and your trade was executed at the settlement price of $1421 per ounce, how much money would you have to deposit into your account if you sold 5 contracts? What would your account’s value be if this contract settled at $1417 per ounce the following day (marked-to-market)? Assume: Price Unit = $$/ounce and contract ~ 100 ounces.
2. A company earned $280,000 in net income and paid cash dividends of $40,000. It has 80,000 shares outstanding. What are the company’s earnings per share and dividends per share? By how much did retained earnings increase (earnings less dividends)? Show how to anserw on excel and state formuals used etc.
3. What are the rational and irrational reasons you think that may lead to high returns in small and value stocks?