Answer:
a. The initial remittance is the same as the initial margin requirement of $3,000.
b. The profit is;
= 100 ounces * ( 1,005 - 1,000)
= $500
Return is;
= Profit/ Margin
= 500/3,000
= 16.67%
c. The loss is;
= 100 * ( 1,000 - 998)
= -$200
d. If the futures price declines to $984, what must the speculator do?
Depends on if the maintenance requirement is still below the balance.
= 3,000 - 100 * (1,000 - 984)
= $1,400
This is below the maintenance margin of $1,500 and so the speculator will have to deposit an amount that will take it back to the original margin requirement.
= 3,000 - 1,400
= $1,600
Speculator should deposit $1,600.
e. = 3,000 - 100 (1,000 - 982)
= $1,200
<span>The two major factors are the supply of the product and the demand for it. These work together to set an equilibrium price that would be considered the market rate for the item under consideration. Changes and shifts in either of the two factors will cause the market price to change accordingly.</span>
Companies using the accrual concept of accounting to complete the measurement process at the year end through the recording of adjusting entries.
<h3>What is an accrual concept?</h3>
An accrual concept is one of the method which records the incomes at the time when it is earned or charges when it is incurred.
Adjusting entries are the entries recorded in the accounting books to close all the accounts at the year end. It helps in determining the correct amount of charges and revenues at the time of finalizing the accounting statements.
Therefore, the adjusting entries are used by the company to complete the measurement process while applying the accrual concept.
Learn more about the accrual concept in the related link:
brainly.com/question/17256489
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Answer:
Big Data
Explanation:
Big data is referred toas a set of large data that is complex and so large in volume that traditional way cannot be used to analyze and store.
