ahh, thanks… forgot about that again… legoland Wrote: ------------------------------------------------------- > acwu, > > your are not correct in Q8. You forgot to add > back 2,000 depreciation to annual cash flow.
Shouldn’t # 12 be C?
Thanks guys. really appreciated your workings. really helpful!
> > 12. an investor holds a short position in four > gold futures contacts. each gold futures contact > is for vdelivery of 100 ounces of gold. when the > contact was entered into on day zero, the futher > price was 350 per ounce. the initial margin is > 1750 per contact and the maintenance margin is $ > 1,312.50 per contact. > Day closing price > 1 345.5 > 2 348.75 > 3 355.5 > 4 356.25 > what is variation margin on the first day a > margin call is received? > A 500 > B 1,800 > C 2,200 > D2,500 > I’m getting $2200 for this one; not sure what I am doing wrong. On day 1, account was up $1800. On day 2, down $1300. On day 3, down another $2700, to a balance of $4800 which triggers a margin call of $2200 in order to bring the account back up to the initial margin of $7000.
ACHOGOGO: here you go… all the answers. http://www.box.net/shared/kt4v780lcl from http://www.analystforum.com/phorums/read.php?11,632439,632464#msg-632464
wow… thanks barthezz. this really helps.