A futures trader has a short position in a copper futures contract with an initial margin of $6,000 and a maintenance margin of $4,500. If the trader’s balance is $4,200, what is the size of the required deposit?Group of answer choices$300$1,800$4,500$1,500None of the above

A company enters into a short futures contract to sell 50,000 units of a commodity for 70 cents per unit. The initial margin is $4000 and the maintenance margin is $2000. What futures price will allow $2000 to be withdrawn from the margin account?? 78 cents 66 cents 74 cents 58 cents

Suppose that you enter into a short futures contract to sell July silver for $5.15 per ounce on the New York Commodity Exchange. The size of the contract is 5,000 ounces. The initial margin is $4,000 and the maintenance margin is $3,000. Which of the following futures prices represents the smallest change that will lead to a margin call?Group of answer choices$4.95$5.35$5.40$5.15$5.05

A company enters into a long futures contract to buy 1,000 units of a commodity for $20 perunit. The initial margin is $6,000 and the maintenance margin is $4,000. What futures pricewill allow $2,000 to be withdrawn from the margin account?(5 marks)d) What is marking-to-market?(5 marks)e) Use the following data for gold and platinum futures (where prices are in dollars per troyounce and margin account balances do not earn any interest) to answer the questions thatfollow:Trading June Gold Futures April Platinum FuturesDate 100 troy oz. per contract 50 troy oz. per contractJan 20 1,594.50 1,874.50Jan 21 1,592.40 1,878.50Jan 22 1,597.70 1,883.10BE332-6-AU/3Suppose that you go short two contracts of April platinum futures on January 20 and longthree contracts of June gold on January 21. Then how much the value of your portfolio at theclosing of January 22 has changed by?(5 marks)(TOTAL: 25 MARKS)QUESTION TWOa) The basis strengthens unexpectedly. How does it affect the position of a short hedger?(5 marks)b) On March 1 the spot price of a commodity is $20 and the July futures price is $19. On June1 the spot price is $24 and the July futures price is $23.50. A company entered into a futurescontract on March 1 to hedge the purchase of the commodity on June 1. It closed out itsposition on June 1. What is the effective price paid by the company for the commodity?(5 marks)c) On March 1 the price of a commodity is $300 and the December futures price is $315. OnNovember 1 the price is $280 and the December futures price is $281. A producer enteredinto a December futures contracts on March 1 to hedge the sale of the commodity onNovember 1. It closed out its position on November 1. What is the effective price receivedby the producer?(5 marks)d) How many types of traders are there in a derivative security market and who are they?(5 marks)BE332-6-AU/4e) Suppose that the standard deviation of monthly changes in the price of commodity A is $2.The standard deviation of monthly changes in the futures price for a contract on commodityB (which is similar to commodity A) is $3. The correlation between the futures price and thecommodity price is 0.9. What hedge ratio should be used when hedging a one monthexposure to the price of commodity A?(5 marks)(TOTAL: 25 MARKS)END OF SECTION A

If bank reserves are 200, the public holds 400 in currency, and the desired reserve/deposit ratio is 0.25, the deposits are ____ and the money supply is _____.Group of answer choices200; 600800; 1200400; 800600; 1000

You sold short 100 shares of common stock at $75 per share.  The initial margin is 50%.  At what stock price would you receive a margin call if the maintenance margin is 30%?