S3 7.4

Question 1

Profit, gain, loss, result of trade, credited, debited

Answer 1

Set-up 1

Question 2

Set-up 1 Order of calculations

Answer 2

Buy+/-Sell = +/- x Contract size = G/L per contract x # Contracts = Gross G/L - Commissions = Net G/L

Question 3

Set-up 2 (NET) includes

Answer 3

• Net cost
• Net price paid
  + Net price received
  + Actual income

Question 4

3 elements needed in set-up 2

Answer 4

• Futures
• Opening price
• Closing price

Question 5

Precentage of margin =

Answer 5

Maring requirement / Mkt price

Question 6

Percentage of profit =1

Answer 6

Profit /Margin deposit

Question 7

Contracts neede to hedge using an index =

Answer 7

Portfokio value (to be hedged) / Index value