ABC Company Ltd purchased 5000 cocoa futures contract at a price of $150 per contract. As part of the contract, ABC was required to deposit $10 per contract initially in their account with the maintenance margin set at $5 per contract. If the price per contract falls to $142 overnight, what action will the exchange require ABC to undertake?

/in /by

ABC Company Ltd purchased 5000 cocoa futures contract at a price of $150
per contract. As part of the contract, ABC was required to deposit $10 per
contract initially in their account with the maintenance margin set at $5 per
contract. If the price per contract falls to $142 overnight, what action will the
exchange require ABC to undertake?

You might also like
When the marginal product of labor is higher than the average product of labor, the average product must be increasing. average product must be decreasing. total product could be increasing or decreasing. total product must be increasing at a decreasing rate.
A consumer spends all his income (in equilibrium) to purchase 50 units of x and 20 units of y when the price of x and y are Rs. 2 and Rs.5 per unit per unit respectively
What distinguishes the income and substitution effects of normal, inferior and Giffen goods?
Emily has decided to spend one-third of her income on clothing. What is Emily’s demand curve for clothing? □ Emily’s taste – as reported in the previous question - has now changed. She now realizes the importance of savings and spends only one-tenth of her income on clothing, instead of one-third. How will Emily’s demand curve change?
What are the advantages and disadvantages of a Monopoly?
A consumer spends all his income (in equilibrium) to purchase 50 units of X and 20 units of Y when shape of the PCC and demand curve using this data and explain your results. equilibrium he consumes 24 units of Y, what will be the income elasticities of demand for X and Y. Determine the shape of the ICC and indicate this movement using the demand curve(s). with his consumption plan?
Consider a consumer who is choosing how many of two goods to buy: Footballs and cricket balls. The consumer has an income of $20, and the cost of a football is $4 and a cricket ball is $2. (a) Write down the equation for the consumer’s budget constraint and graph it.(b) The government decides that football is evil and needs to be taxed. They introduce a 50% tax on each football sold. Rewrite and re-graph the budget constraint.(c) A new government is elected that hates all sports. They now tax both footballs and cricket balls at 50%. What does the budget constraint look like now?
Debanjana is selling her viola . The minimum amount she needs to be paid for the viola is $15,500.she finds a buyer who is willing to pay $22,400, but this buyer insists that debanjana pays for delivery the viola. The cost of delivery is $700.debanjana producer producer surplus from selling his visa is equal to ,