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Question
A speculator purchases a 37,000-pound contract for coffee for $1.08 per pound with an initial margin requirement of 7%. The price goes up to $1.13 in three months. What is the percentage of profit?A.252.8%
B.264.4%
C.51.2%
D.63.2%
E.66.1%
Answer
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Related questions
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The two types of investments that provide the highest and lowest yields in the Ibbotson study of Stocks, Bonds, Bills and Inflation are:
A.large company stocks and U.S. treasury bills.
B.large company stocks and long-term government bonds.
C.small company stocks and U.S. treasury bills.
D.small company stocks and preferred stock.
E.U.S. treasury bills and small company stocks.
Q:
The difference between the cash market and the futures market is:
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D.that the commodities are usually less expensive in the futures market.
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Assume you have purchased a contract for 25,000 British pounds for $35,000. Your margin requirement is $2,000. If the value of a pound increases .01, what is your percentage profit?
A.10.0%
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Q:
In order to be listed on an exchange, a firm must meet minimum standards pertaining to the following criteria:
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Q:
The Securities Investor Protection Corporation (SIPC) was established to:
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Q:
Program trading
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Q:
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Q:
An employee of an investment house who executes orders on the floor of the exchange for customers of the firm is called a:
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B.registered trader.
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Q:
From the investment banker's point of view, the major reason syndicates are formed in the distribution of large issues is for the purpose of:
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Q:
A means of exchanging assets, which may or may not include a specified location, and in which the seller may or may not own the assets being sold, is called:
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Q:
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The value of a bond at any given time is the sum of:
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The approximate yield to maturity method tends to understate the true yield for bonds trading at a discount.
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Q:
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Q:
What would be the current yield of a 6% coupon bond priced at $950?
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Q:
The impact of interest rate changes on bond prices can be magnified by:
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B.investing in higher-quality corporate bonds.
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Q:
The market segmentation theory focuses on:
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Q:
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