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guapka [62]
3 years ago
14

You enter into a short crude oil futures contract at $43 per barrel. The initial margin is $3,375 and the maintenence margin is

$2,500. One contract is for 1,000 barrels of oil. By how much do oil prices have to change before you receive a margin call
Business
1 answer:
Wewaii [24]3 years ago
8 0

Answer:

The correct answer is "43.875". A further explanation is provided below.

Explanation:

The given values are:

Initial margin,

= $3,375

Maintenance margin,

= $2,500

Barrels of oil,

= 1,000

Now,

The loss on the position will be:

= 3375-2500

= 875 ($)

then,

⇒  1000 (P - 43) = 875

⇒  1000P-43000=875

On adding "43000" both sides, we get

⇒  1000P-43000+43000=875+43000

⇒                             1000P=43875

⇒                                    P=\frac{43875}{1000}

⇒                                        =43.875

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ELEN [110]

Answer:

E. not change.

Explanation:

The break even point is a point at which the company produces a quantity at which it does not earn any profit or face any losses, so it is a point where the revenues are equal to cost. The break even quantity depends on the fixed cost, variable cost and price of the product and not on the quantity sold. So when the Brooklyn Unit sales are 300 units less than expected it wont change the break even point because the break even point has no relation to it.

8 0
3 years ago
Cereal is an example of a consumer product, where many ________ cost comprehensive prototypes are built since the product has __
Ilia_Sergeevich [38]

There are different types of prototype decisions. Cereal is an example of a consumer product, where many low cost comprehensive prototypes are built since the product has high market risk.

There are different kinds of Prototype Decision when looking at the technical risk compared to the prototype cost. They are:

  • Low risk - low cost (printed stuff) : Here, there is no need for comprehensive prototypes.

  • Low risk - high cost (ships, buildings) : Here, there is no way one can afford comprehensive prototype.

  • High risk - low cost (software) : Here, there a a lot of comprehensive prototypes.

  • High risk - high cost (airplanes, satellites) : This often make use of analytical models a lot, have a well throughout planned of comprehensive prototypes

Prototyping is simply known to be the estimation or approximation of the product with its one or more areas of interest.  It has 2 kinds which are Physical prototypes vs. analytical prototypes , Comprehensive (with all the attributes of a product) vs. focused.

Learn more about Prototyping from

brainly.com/question/7509258

4 0
2 years ago
If ________ fails and cannot pay its​ liabilities, creditors can force the owners to pay the​ business's debts from the​ owners'
Gwar [14]

Answer:

partnership; least

Explanation:

In partnership, two or more people join together to form a firm called partnership firms for the motive of earning profits. The partners have unlimited liability which means they are responsible for meeting debt from their personal assets in case partnership defaults.

This feature of partnership offers assurance to the creditors that their investment is safe.

So, if partnership fails, the least an investor can expect to lose on his investment.

6 0
3 years ago
What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 7 years if the current price is $500. Plea
Softa [21]

Answer:

0.104

Explanation:

We are to determine the yield to maturity of the bond

yield to maturity can be determined using a financial calculator

Cash flow in year 0 = -500

Cash flow each year from year 1 to 6 = 0

Cash flow in year 7 = 1000

YTM = 10.4%

To find the YTM using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the IRR button and then press the compute button.  

6 0
2 years ago
Review your pre and post scores from "Where Are You Now." Did your scores improve? What activities did you complete that facilit
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Answer:

what do you mean did our scores improve, if so, idk yet

3 0
3 years ago
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