The futures price of a metal is $250 an ounce. Futures contracts are for 100 ounces, and the margin requirement is $3,000 a contract. The maintenance market requirement is $1,500. A speculator expects the price to rise and enters into a contract to buy the metal. a. How much must the speculat or initially remit?
b. If the futures price rises to $\$ 255$, what is the profit and return on the position?
c. If the futures price declines to $\$ 2.48$, what is the loss on the position?
f. If the futures price declines to $\$ 2.34$, what must the speculator do?
e. If the futures price continues to decline to $\$ 2.32$, how much does the speculator have in the account?

Question

The futures price of a metal is $250 an ounce. Futures contracts are for 100 ounces, and the margin requirement is $3,000 a contract. The maintenance market requirement is $1,500. A speculator expects the price to rise and enters into a contract to buy the metal.​ a. How much must the speculat or initially remit?
b. If the futures price rises to $\$ 255$, what is the profit and return on the position?
c. If the futures price declines to $\$ 2.48$, what is the loss on the position?
f. If the futures price declines to $\$ 2.34$, what must the speculator do?
e. If the futures price continues to decline to $\$ 2.32$, how much does the speculator have in the account? ​

Quizplus · Accepted Answer

The Answer of The futures price of a metal is $250 an ounce. Futures contracts are for 100 ounces, and the margin requirement is $3,000 a contract. The maintenance market requirement is $1,500. A speculator expects the price to rise and enters into a contract to buy the metal.​ a. How much must the speculat or initially remit?
b. If the futures price rises to $\$ 255$, what is the profit and return on the position?
c. If the futures price declines to $\$ 2.48$, what is the loss on the position?
f. If the futures price declines to $\$ 2.34$, what must the speculator do?
e. If the futures price continues to decline to $\$ 2.32$, how much does the speculator have in the account? ​

The Futures Price of a Metal Is $250 an Ounce $255\$ 255$255

The Futures Price of a Metal Is $250 an Ounce $\$ 255$