a. Calculate the equity value of your margin account on each settlement date, including any additional equity required to meet a margin call. Also compute the amount of cash that will be returned to you on July 9, and the gain or loss on your position, expressed as a percentage of your initial margin commitment. b. Assuming that the underlying soybean meal investment pays no dividend and requires a storage cost of 1.5 percent (of current value), calculate the current (i. e., March 9) spot price for a ton of soybean meal and the implied May 9 price for the same ton. In your calculations, assume that an annual risk-free rate of 8 percent prevails over the entire contract life. c. Now suppose that on March 9 you also entered into a long forward contract for the purchase of 100 tons of soybean meal on July 9. Assume further that the July forward and futures contract prices always are identical to one another at any point in time. Calculate the cash amount of your gain or loss if you unwind both positions in their respective markets on May 9 and June 9, taking into account the prevailing settlement conditions in the two markets.
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Business, 22.06.2019 13:50
Which one of the following statements is true? ddt does not prevent disease from passing from agricultural animals to humans. cost was a major factor in the united states government's decision to ban ddt. many african governments concluded that the potential long-term health effects of ddt were not as serious as the immediate problem of insect control. ddt cannot accumulate in the fat of animals. the ddt ban in the united states has made it very difficult to control agricultural insect pests.
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Business, 22.06.2019 20:30
The research of robert siegler and eric jenkins on the development of the counting-on strategy is an example of design.
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a. Calculate the equity value of your margin account on each settlement date, including any addition...
Computers and Technology, 12.12.2019 00:31
Computers and Technology, 12.12.2019 00:31
Computers and Technology, 12.12.2019 00:31