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Ghella [55]
3 years ago
11

A company enters into a short futures contract to sell 25,000 units of a commodity for 950 cents per unit. The initial margin is

$4,500 and the maintenance margin is $3,750. Calculate the futures price per unit that will allow $2,000 to be withdrawn from the margin account.
Business
1 answer:
Ksju [112]3 years ago
8 0

Answer:

$958

Explanation:

The amount that is excess in the initial margin account can be withdrawn. So we calculate the price increase that will result in a $2000 increase in initial margin.

The present price per unit of the commodity is 950 cents for 25,000 units

A unit increase of the price (which is in cents) will be 1/100= 0.01

Therefore an increase in price of 0.01 will lead to gain of 0.01 * 25,000= $250

Let's get price increase that will result in $2,000 gain

$250 = 1 unit price increase

$2,000 = x

x= (2000 * 1) ÷ 250= 8 units increase

Therefore the price at which $2,000 can be withdrawn is 950 + 8= 958 cents

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Clint's salary increased from ​$22 comma 000 to ​$35 comma 200 over a​ three-year period.​ Helen's salary increased from ​$28 co
Romashka [77]

Answer:

a

Explanation:

Helen salary increased more, because her salary increased by 16,800 dollars this is more than 13,200 dollars ,the amount Clint's salary increased.

3 0
3 years ago
In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases,
nordsb [41]

Answer:

Option A is correct.

deficit; negative

Explanation:

In a small open economy, starting from a position of balanced trade, if the government increases domestic government purchases, this produces a tendency toward a trade <u>deficit </u>and <u>negaive</u> net capital outflow.

This corresponds to the concept of twin deficits where a budget deficit that results from increased government purchases, also results in current account deficit. Since trade deficit implies negative NX there is a negative NCO.

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3 years ago
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5 0
3 years ago
Read 2 more answers
Factors of production are: the laws that regulate manufacturers. the technological innovations available to companies. the resou
mestny [16]

Answer:

the resources used to create output.

Explanation:

Factors of production are the resources used to create output.

They include :

Land : land is all natural resources used in the production process.

Capital - Capital includes all man made resources used in the production process

Labor : all human effort expended in the production process

Entrepreneurship : organizes all other factors of production

4 0
3 years ago
The long-term liability section of Rainbow Digital Corporation’s balance sheet as of December 31, 2020, included 10% bonds havin
Anon25 [30]

Answer:

Loss on early extinguishment = 1,008,357.64

Explanation:

Data:

T = Interest rate = 10% = 0.10

FA = Face amount = $1,000,000

RD = Remaining Discount = $139,294

Y = Yield rate = 12% = 0.12

RT = Retirement Time = 6/12 = 0.5

BA = Bonds at = 101% = 1.01

EE = Gain (loss) on early extinguishment = ?

IE = Interest Expense = ?

D = Discount on bond payable = ?

Calculations:

IE = Y * (FA - RD) * RT

IE = 0.12 * ($1,000,000 - $139,294) * 0.5 = 0.12 *  $860,706 * 0.5 = $51,642.36

D = FA - [IE - (T * FA * RT)]

D = $1,000,000 - [$51,642.36 - (0.10 * $1,000,000 * 0.5)] = $1,000,000 - [$51,642.36 - $50,000] = $1,000,000 - $1,642.36 = $998,357.64

EE = FA - [D + (FA * BA)]

EE = $1,000,000 - [$998,357.64 + ($1,000,000 * 1.01)] = $1,000,000 - [$998,357.64 + $1,010,000] = $1,000,000 - 2,008,357.64 = -1,008,357.64

EE = -1,008,357.64 (Loss)

4 0
3 years ago
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