An Investor Controls Contracts on Five (5)5,000 Bushel Futures Contract

question 68

Essay

An investor controls contracts on five (5)5,000 bushel futures contract on grain at a price of $3 per bushel.The margin requirement is 5 percent and the maintenance margin is 80 percent.How much would the price per bushel have to change to provide a $750 profit.

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Definitions:

Connectionless Protocol

A protocol that a host computer can use to send data over the network without establishing a direct connection with any specific recipient computer.

Protocol

A set of rules or standards designed to enable computers to connect and transmit data across networks.

Computers

Electronic devices that process data according to a set of instructions, capable of executing vast numbers of operations.

Static Address

A permanent Internet Protocol (IP) address assigned to a computing device, unlike a dynamically assigned IP address which can change.