Solved

Given a 5,000 Bushel Futures Contract on Grain at a Price

Question 78

Essay

Given a 5,000 bushel futures contract on grain at a price of $2.75 per bushel,margin requirement is 5 percent,maintenance margin is 80 percent.What would the return on investment be if the price increases by $.08 per bushel?

Correct Answer:

verifed

Verified

$.08 gain x 5,000 bushels = $4...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents