Phoenix, a popular coffee shop chain in north america, recently opened 400 stores to cater to its rapidly increasing number of p
1 answer:
You might be interested in
Answer:
Given that,
Operator bought a futures contract = 5,000 kilograms of rice at $1.50 per kilogram
Initial margin = $4,000
Maintenance margin = $2,000
(a)
(i) Balance of Margin = Initial margin - maintenance margin
= $4,000 - $2,000
= $2,000 (loss)
(ii) Change in price =
= $0.40
(b) Price per kilogram = Current price - Change in Price
= $1.50 - $0.40
= $1.10
So, change price per kg is $1.10
(c) Balance of Margin = Initial margin - maintenance margin
= $4,000 + $2,000
= $6,000 (loss)
Change in price =
= $0.40
(d) Price per kg = Current price - change in price
= $1.50 + $0.40
= $1.90