answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Agata [3.3K]
2 years ago
12

Suppose that you enter into a short futures contract to sell July silver for $17.20 per ounce. The size of the contract is 5,000

ounces. The initial margin is $4,000, and the maintenance margin is $3,000. What change in the futures price will lead to a margin call? What happens if you do not meet the margin call?
Business
1 answer:
ivanzaharov [21]2 years ago
7 0

Answer:

$0.20

Explanation:

For computing the change in future price, first we have to determine the loss which is shown below:

Loss = Initial Margin - Maintenance Margin

        = $4,000 - $3,000

        = $1,000

Now the change in future price would be

= Loss ÷ size of the contract

= $1,000 ÷ 5,000 ounces

= $0.20

The future price is increased by $0.20

And, if the margin call is not meet than the broker will stop at best price so that he cannot suffer more loss

You might be interested in
Debra notes that Theo Chocolate has started holding its own operations to the same IMO standards of fair trade to which it holds
slamgirl [31]

Answer:

The correct answer is letter "A": Ethical leadership.

Explanation:

Ethical leadership is the set of managerial practices that executives use to give an example to their subordinates and promote good values among the organization. This is typically achieved by promoting fair treatment among workers and social awareness with the external environment of the firm.

In the example, <em>Theo Chocolate started to follow the International Maritime Organization (IMO) standards that promote the safety and security of international shipping and forbid marine pollution from ships</em>.

8 0
2 years ago
Marc is 32 and married to Estella, who is 30. Estella is a stay-at-home mom to their two children, ages 1 and 4. They currently
astraxan [27]

Answer:

B. $1,015,500 on Marc ; $756,500 for Estella

Explanation:

Marc has current salary of $110,000 with which he runs the household expenses. If Marc dies then there should be more insurance coverage because he is the only person who earns in the house. Estella is a house wife and insurance coverage for her is lower than Marc because he will still be able to continue his earning.

6 0
1 year ago
The key characteristic of organizational culture that addresses the degree to which people exhibit integrity and high ethical st
attashe74 [19]

Answer:

Integrity

Explanation:

Organizational culture consists of shared assumptions, values, and beliefs, which governs how people behave in organizations. These values determines how people behave in an organizational settings and there are different characteristics ranging from innovation, teamwork, stability etc. The main one that addresses degree people exhibit integrity and high ethical standards is Integrity.

8 0
2 years ago
Winn Co. sells subscriptions to a specialized directory that is published semiannually and shipped to subscribers on April 15 an
sergeinik [125]

Answer:

O $ 900,000

Explanation:

When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are

Debit Cash account and Credit Unearned fees or deferred revenue.

As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.

Given that

  • the specialized directory that is published semiannually and shipped to subscribers on April 15 and October 15 and
  • Subscriptions received after the March 31 and September 30 cutoff dates are held for the next publication and
  • Cash from subscribers is received evenly during the year and is credited to deferred subscription revenue

The amount to be deferred is the sum of the amounts collected after September 30 (from October to December year 2

= 3/12 * $3,600,000

= $900,000

4 0
2 years ago
Kuhn Bicycle Company has been manufactring its own seats for its bicycles. The company is currently operating at 100% capacity,
AfilCa [17]

Answer:

It is cheaper to buy the seats.

Explanation:

Giving the following information:

The company is currently operating at 100% capacity, and variable manufacturing overhead is charged to production at the rate of 60% of direct labor cost. The direct materials and direct labor cost per unit to make the bicycle seats are $8.00 and $9.00, respectively. Normal production is 50,000 bicycles per year. A supplier offers to make the bicycle seats for $21 each. If the bicycle company accepts this offer, all variable manufacturing costs will be eliminated, but the $30,000 of fixed manufacturing overhead currently being charged to the bicycle seats will have to be absorbed by other products.

Make in house= [8 + 9 + (9*0.6)]*50,000= $1,120,000

Buy= 21*50,000= $1,050,000

It is cheaper to buy the seats.

8 0
2 years ago
Other questions:
  • Lawrence Masters submitted his business plan to a potential investor, but was disappointed when he was quickly turned down. Chan
    13·2 answers
  • Which of the following constitute​ Porter's 5 factor​ model?
    10·1 answer
  • Every day, 500 airplanes in San Francisco incur an additional 30 minutes of airport delays when flying into or out of the airpor
    7·1 answer
  • In a business environment, persuasion is critical to success. Persuasion is necessary when you anticipate resistance or when you
    7·1 answer
  • Mason Corporation had $650,000 in invested assets, sales of $700,000, income from operations amounting to $99,000, and a desired
    10·2 answers
  • Which of the following is not commonly regarded as being part of a firm’s credit policy? a. Credit period b. Collection policy c
    8·1 answer
  • Delores Bierlein paid a $200 deposit toward the rental of the Silver Room at Alex's Continental Inn for her wedding reception. L
    8·2 answers
  • Vail is one of the largest ski resorts in the United States. Suppose that on October 1, 2021, Vail sells gift cards (lift passes
    12·1 answer
  • Use the following information . On January 1, 2018, Dennis Company purchased land for an office site by paying $540,000 cash. De
    11·1 answer
  • Adrian's Premium Boxing Service subcontracts with a chocolate manufacturer to box premium chocolates for their mail order catalo
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!