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A cashew merchant wants to sell ten cashew futures contracts on April 10 (Monday), at ₹ 6800 each. The futures price is for each carton and the contract size is 50 cartons. The initial margin for the

A cashew merchant wants to sell ten cashew futures contracts on April 10 (Monday), at ₹ 6800 each. The futures price is for each carton and the contract size is 50 cartons. The initial margin for the merchant is 5% of the contract value and the maintenance margin is one lakh rupees. The futures prices from April 10 to April 18 are given below. Using these, prepare a daily statement for this merchant’s margin account, between April 10 and April 18, showing the daily gain/loss and the margin account balance. In case the merchant decides to close this position on April 18, how much will he receive?

10-Apr 6,800 11-Apr 6,820 12-Apr 6,790 13-Apr 6,870 14-Apr 6,950 17-Apr 6,860 18-Apr 6,880

Apr 08 2021 View more View Less

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