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Mustay (m)
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Re.
« #224 on: April 13, 2008, 11:26 AM » |
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@ peace land, the name of the place I wrote about is CBA academy. They have a centre located in V.i. Their website is www.cbaacademy.com |
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Mustay (m)
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Re.
« #225 on: April 13, 2008, 11:28 AM » |
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@ peace land, the name of the place I wrote about is CBA academy. They have a centre located in V.i. Their website is www.cbaacademy.com |
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candylips (m)
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A trader enters into a short position of 20 futures contracts at an initial futures price of 85. Initial margin, per contract is N7.50. Maintenance margin per contract is N7.00. Each contract is for one unit of the underlying asset. Over the next three days the contract settles at N86, N84.25, and N85.5. Assuming the trader does not withdraw any funds from his/her margin account during the period, but does post variation margin sufficient to meet any maintenance margins calls, the balance in the margin account will be
A $150.00 at initiation and $140.00 at settlement on Day 3
B $150.00 at initiation and $150.00 at settlement on Day 3
C $150.00 at initiation and $165.00 at settlement on Day 3
D $140.00 at initiation and $150.00 at settlement on Day 3
Maintenance margin = 20 * 7.0 = 140 0 day margin = 20 * 7.5 = 150 1st day margin balance = 150 + gain where gain is (86-85)*20 = 170 2nd day margin balance = 170 - loss where loss is(86-84.25)*20 =135 - this is below maintenance margin so a margin call is made 3 rd day variation margin deposit = 5 gain = (85.5 -84.25) = 1.25 * 20 = 25 Total balance is 135 + 5+25 = 165 Ans is C |
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lowee231
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Candylips
Sorry but your wrong.
Hint you are not treating it as a a short contract
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candylips (m)
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if short i think it should be (b)
ist day 150 - 20 = 130 below margin so add variation margin of 10
2nd day 130 + 35 +10 = 175
3rd day 175 -25 = 150
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lowee231
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on the right track
but when depositing a variance margin for a futures contract as opposed to a stock account u bring it up to the initial margin not the maintenance margin
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candylips (m)
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Dude if i bring it up to the initial margin i get 160.
Abeg wetin be the correct answer
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lowee231
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that is actually the correct answer its from the CFA text book.
They made an error in the question.
So how has the reading been, any suggestions, hints d day is getting closer
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candylips (m)
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i see.
i ve finished reading the texts and should be starting revision shortly
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Tolulop001 (f)
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i know the thread is not for me but due to i plan to write June 2010. this may sound too far off but im a student and that is where it fits in my 5 year plan, lol,
please any tips for a youngster ike me,
i also have little or no knowledge in stuff life the cfa content so are there materials i can go through before the real thing
also will this qualification be as relevant in 3 years time?
thanks a lot
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lowee231
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start studying
what are You majoring in at University.
qualifications will always be relevant as far as u know what you're doing and know how to do what ever u do
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lizsuccess
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I am going to write the CFA level one exams in December. Is there anywhere I can receive lectures in Nigeria or can I pass if I read on my own.
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lizsuccess
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Hi,
which is the best, LIFA or CFA?
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Mustay (m)
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read previous posts to see the lecture houses in Nigeria.
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lizsuccess
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@ mustay
thanks for replying
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bakre (m)
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@Lizsucess
Please,if u can meet the expense of CFA,go for it.It's highly recognised all over the world than LIFA.However,u can write the two. I had done LIFA too and i passed.
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bakre (m)
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@lizsuccess
You can read on your own and pass the exam.it all depends on u.All u need to get is the material,video lecture,TI calculator.time and total dedication and God also.u can contact me for any of the material.Tokunbo 08039307507.Its unfortunate we don't have any plan for December 2008 lecture.However,u can read on your own and pass.
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Tolulop001 (f)
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start studying
what are You majoring in at University.
qualifications will always be relevant as far as u know what you're doing and know how to do what ever u do
im actually in my final year studyin medicine but i don't want to go that line |
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candylips (m)
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From medicine to finance. Wow thats a drastic change.
Medicine is still a very noble safe profession. I will probably advice you to stick to it.
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bakre (m)
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i reason with u candidlips but she might have a cogent reason .I know of a medical doctor that is writing the exam.So,Its all depends on her sence of effectiveness
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Tolulop001 (f)
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i reason with u candidlips but she might have a cogent reason .I know of a medical doctor that is writing the exam.So,Its all depends on her sence of effectiveness
From medicine to finance. Wow thats a drastic change.
Medicine is still a very noble safe profession. I will probably advice you to stick to it.
the thing is i feel im my heart of hearts that this is what i want to do, i know it is drastic, but i really am motivated at this time. i believe il be feeling the same way 2 years down the line nd i really want to be prepared for the exam. thanks. any more advice will be appeciated, |
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lowee231
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Always follow your heart
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candylips (m)
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the thing is i feel im my heart of hearts that this is what i want to do, i know it is drastic, but i really am motivated at this time. i believe il be feeling the same way 2 years down the line nd i really want to be prepared for the exam. thanks. any more advice will be appeciated,
Then its not worth wasting your time studying for 7-8 years if you are not going to go into practice. |
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Tolulop001 (f)
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Then its not worth wasting your time studying for 7-8 years if you are not going to go into practice.
welll candylips no experience is ever wasted, i could as well have studied a 4 year course and then decided to go into something else. the only reason i need this is because i have no prior experience in investments. and its 6 years not 7-8years! |
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bakre (m)
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follow your heart and start early.Best of luck.
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bakre (m)
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the only reason i need this is because i have no prior experience in investments. and its 6 years not 7-8years! @Tolulope Then u can go for diploma in finance or MBA rather than CFA.Obviously,this will save your time and also give u basic knowledge about investment.(eg,Corporate finance,Financial statement analysis,QA,etc) |
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lowee231
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I totally agree with Bakre
If you're serious about it take a finance course and see how it feels.
Because by the time u get into the nitty gritty u might end up hating yourself. Try starting gently and slowly ease yourself in.
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wyt (m)
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just to hail the june writers, be back to u
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Mustay (m)
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@ TOLU  THERE'S NOTHING WRONG THERE AS LONG AS YOU ARE REALLY INTERESTED IN FINANCE. AFTERALL, WHAT DO THE ACCENTURE GUYS DO THESE DAYS/ ISN'T IT TO TURN ENGINEERS INTO ACCOUNTANTS? |
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Tolulop001 (f)
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the only reason i need this is because i have no prior experience in investments. and its 6 years not 7-8years!
@Tolulope
Then u can go for diploma in finance or MBA rather than CFA.Obviously,this will save your time and also give u basic knowledge about investment.(eg,Corporate finance,Financial statement analysis,QA,etc)
well ill see how it goes, bakre, i think ill look for a basic course first of all and then see how it goes before jumping into cfa just like that. Any ideas of diplomas and the like in investments and all? they would be highly welcome i understand that it would be tough but i believe that if i put my heart into it i can make it work, at least i can say that for medical school and i think the same rules apply! |
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lizsuccess
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I am writing level in December and I have already registered. Is there anyone writing Level 1 in December?
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