Louisiana State University, Shreveport FIN FIN 710 Suppose that on Monday, 7 July, you assume a long position in one December British pound futures contract at the futures price of $1. The initial…
December British pound futures contract at the futures price of $1.20/£. The initial margin is $2,000, and the maintenance margin is $1,500. The contract size is £125,000. Assume you do not withdraw excess money from your margin balance. All margin requirements are met with cash. You hold your long position through Thursday, 10 July and short the same contract (a reversing trade) at the opening price of $1.15. The settlement prices on Monday, Tuesday and Wednesday are listed in the following:
Monday: $1.21
Tuesday: $1.25
Wednesday: $1.17
What is your total gain or loss from this position?
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.
Read moreEach paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.
Read moreThanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.
Read moreYour email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.
Read moreBy sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.
Read more