1. If you bought a September '17 contract, one contract is for 5,000 bushels, and the price closes at $4.6595/bushel, what is your profit or loss? 2. Rob Thomas Traders opened an account to short-sell 1,000 shares of WeWork at $60. The initial margin requirement was 50%.  (The margin account pays no interest.) A year later, the price of WeWork has risen from $60 to $76, and the stock has paid a dividend of $2.75 per share. 2a. What is the remaining margin in the account? 2b. If the maintenance margin requirement is 35%, will Rob Thomas Traders recieve a margin call? MATURITY LAST CHG HIGH LOW May '17 3.6125 -0.0525 3.6800 3.6075 Jul '17 3.6775 -0.0550 3.7450 3.6725 Sep '17 3.7525 -0.0475 3.8125 3.7475 Dec '17 3.8575 -0.0450 3.9150 3.8525 Mar '17 3.9575 -0.0400 4.0025 3.9475

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
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1. If you bought a September '17 contract, one contract is for 5,000 bushels, and the price closes at $4.6595/bushel, what is your profit or loss?

2. Rob Thomas Traders opened an account to short-sell 1,000 shares of WeWork at $60. The initial margin requirement was 50%.  (The margin account pays no interest.) A year later, the price of WeWork has risen from $60 to $76, and the stock has paid a dividend of $2.75 per share.

2a. What is the remaining margin in the account?

2b. If the maintenance margin requirement is 35%, will Rob Thomas Traders recieve a margin call?

MATURITY LAST CHG HIGH LOW
May '17 3.6125 -0.0525 3.6800 3.6075
Jul '17 3.6775 -0.0550 3.7450 3.6725
Sep '17 3.7525 -0.0475 3.8125 3.7475
Dec '17 3.8575 -0.0450 3.9150 3.8525
Mar '17 3.9575 -0.0400 4.0025 3.9475
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