Given a 5,000 Bushel Futures Contract on Grain at a Price

question 39

Short Answer

Given a 5,000 bushel futures contract on grain at a price of $2.75 per bushel, where the margin requirement is 5%, and the maintenance margin is 80%. What would the return on investment be if the price increases by $.08 per bushel?

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Definitions:

Government Concessions

Government concessions are compromises or allowances made by a governing body toward a dissenting group or population, often in response to demands made through protests or negotiations.

Protesters' Demands

encapsulates the specific changes or actions that a group of people publicly demonstrating are seeking to achieve from an authority or institution.

Protest Movements

Collective efforts of individuals or groups to express opposition to, or demand changes in, political, social, economic, or environmental issues.

National Industrial Recovery Act

A 1933 U.S. law aimed at boosting economic recovery during the Great Depression, which sought to encourage industrial growth and improve labor conditions.