Derivatives-I

bhuyanpk
Good Student
Posts: 14
Joined: Sat Aug 08, 2015 12:12 pm

Derivatives-I

Postby bhuyanpk » Mon Sep 14, 2015 11:27 am

how everyday futures Spot prices is calculated? Based on which Mar to market calculation is arrived at

Tags:

edupristine
Finance Junkie
Posts: 722
Joined: Wed Apr 09, 2014 6:28 am

Re: Derivatives-I

Postby edupristine » Tue Sep 15, 2015 12:18 pm

For Example: You have $10000 in your trading account for the day. Your broker is providing you 40% margin on it. So you can trade for $40000(10000*4) for that day. You are having $42000 at the end of the day in your trading account, you are gaining $2000. This concept is called Mark to market. Your new account Balance will be $12000. So you can trade for $12000 * 4 =$48000 on the next day.

Spot rate is actually calculated in Bonds using Bootstrapping. Please provide us specific question so that we can help you with the complete solution.


Return to “CFA Level I”



Disclaimer

Global Association of Risk Professionals, Inc. (GARP®) does not endorse, promote, review or warrant the accuracy of the products or services offered by EduPristine for FRM® related information, nor does it endorse any pass rates claimed by the provider. Further, GARP® is not responsible for any fees or costs paid by the user to EduPristine nor is GARP® responsible for any fees or costs of any person or entity providing any services to EduPristine Study Program. FRM®, GARP® and Global Association of Risk Professionals®, are trademarks owned by the Global Association of Risk Professionals, Inc

CFA Institute does not endorse, promote, or warrant the accuracy or quality of the products or services offered by EduPristine. CFA Institute, CFA®, Claritas® and Chartered Financial Analyst® are trademarks owned by CFA Institute.

Utmost care has been taken to ensure that there is no copyright violation or infringement in any of our content. Still, in case you feel that there is any copyright violation of any kind please send a mail to abuse@edupristine.com and we will rectify it.