Question 6 (22 pts): Margin Account Assume you buy one July '23 KC HRW contract today at $5.2875; its initial is $2,310 with a maintenance of $2,100. o Today - July KC HRW settles at 528'6. What do you deposit in the margin account? o Session 2-July KC HRW settles at 520'2 What is the gain or loss from session 2? What is the balance? Is there a margin call? If so, what is it? o Session 3-July KC HRW settles at 526'6 What is the gain or loss from session 3? What is the balance? Is there a margin call? If so, what is it? o Session 4 - Offset July KC HRW at 536'4 What is the gain or loss from session 4? What is the balance? Is there a margin call? If so, what is it? o Session 5 - Offset July KC HRW at 530'0 Calculate the profit or loss on the trade.
Question 6 (22 pts): Margin Account Assume you buy one July '23 KC HRW contract today at $5.2875; its initial is $2,310 with a maintenance of $2,100. o Today - July KC HRW settles at 528'6. What do you deposit in the margin account? o Session 2-July KC HRW settles at 520'2 What is the gain or loss from session 2? What is the balance? Is there a margin call? If so, what is it? o Session 3-July KC HRW settles at 526'6 What is the gain or loss from session 3? What is the balance? Is there a margin call? If so, what is it? o Session 4 - Offset July KC HRW at 536'4 What is the gain or loss from session 4? What is the balance? Is there a margin call? If so, what is it? o Session 5 - Offset July KC HRW at 530'0 Calculate the profit or loss on the trade.
Chapter6: Investing And Financing Activities
Section: Chapter Questions
Problem 3.8C
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Transcribed Image Text:Question 6 (22 pts): Margin Account
Assume you buy one July '23 KC HRW contract today at $5.2875; its initial is $2,310
with a maintenance of $2,100.
o Today - July KC HRW settles at 528'6.
What do you deposit in the margin account?
o Session 2-July KC HRW settles at 520'2
What is the gain or loss from session 2?
What is the balance?
Is there a margin call? If so, what is it?
o Session 3-July KC HRW settles at 526'6
What is the gain or loss from session 3?
What is the balance?
Is there a margin call? If so, what is it?
o Session 4 - Offset July KC HRW at 536'4
What is the gain or loss from session 4?
What is the balance?
Is there a margin call? If so, what is it?
o Session 5 - Offset July KC HRW at 530'0
Calculate the profit or loss on the trade.
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