## [answered] 1c. One futures contract on orange juice is equal to 15,000

Hi I have 4 finance questions related to futures contracts. Thank you.?

1c. One futures contract on orange juice is equal to 15,000 lbs. of juice.

Recently, the contract was trading at around \$ 1.46/lb. The initial margin for

an orange juice contract is \$1,320, approximately what is the leverage an

investor enjoys by trading this commodity? 2a. On Nov. 28, 2016, the nearby S&amp;P 500 contract closed at 2200.80.

What was the

total value represented by one S&amp;P contract as of the day of that close? 2c. Assume that in two weeks, the contract closes at 2250. What would be

the dollar amount of your profit or loss, given the action you answered for

part b? Explain how you arrived at your answer. 2d. Currently, the initial margin requirement for an S&amp;P futures contract is

\$28,125, and the maintenance margin requirement is \$22,500.

Given the profit you found in part c, calculate your percentage profit on the

trade, given what you had invested (the initial margin requirement). 2e. Assume now that the trade went against you, i.e., the price of the

contract goes down instead of up. At what contract price would you have

gotten a margin call? Explain. How much additional margin will you need to

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