At the end of one day a clearing house member is long 50 contracts, and thesettlement price is $10,000 per contract. The original margin is $500 per contract.On the following day the member becomes responsible for clearing an additional 10long contracts, entered into at a price of $9,800 per contract. The settlement price atthe end of this day is still $9,800. How much does the member have to add to itsmargin account with the exchange clearing house?$0$5,000$10,000$15,000

Margins are required to be maintain with clearing houses and these are to be settled at each day and…

Answered: At the end of one day a clearing house…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Zoro Company enters into a contract to sell Product A and Product B on July 1, 2020 for an upfront cash payment of P250,000. Product A will be delivered at the end of the year, and Product B will be delivered the following year. Zoro Company sells Product A for P80,000 and Product B for P240,000. 1. How many performance obligations are there in the contract? 2.what is the transaction price? 3.how much is revenue to be recognized in 2020? 4. how much is revenue to be recognized in 2021?

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