Equity/capital needed to purchase contracts
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You decide to act on your hunches about feeder cattle, so you purchase four contracts for April delivery at 88.8. You are required to put down 10%. How much equity/capital did you need to make this transaction?
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The solution explains how to calculate the amount of equity/capital needed to purchase contracts
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The price of the contract is 88.8 implies 88.8 cents per pound. Volume = 50,000 ...
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