Go to http://www.cmegroup.com/trading/fx/ (Links to an external site.). Assume that todayâs settlement price on a CME EUR futures contract is the open price. Your performance bond account currently has a balance of $1700. The next three days settlement prices are +1%, +2% and -2% from todayâs open price. Calculate the changes in the Performance bond account from daily marking to market and the balance of the performance bond account after the third day. Provide calculations where necessary to support your answer. Summarize your findings in a two page paper, not including title and references pages.
Sample Solution
he macro-environment is analysed by using PESTEL Analysis. It is a framework used to analyze and monitor the macro-environmental factor that has insightful impact on an organizationâs performance, particularly in the future to determine opportunities and threats. Political Political factor is all about how and to what extend a government intervenes in the economy or a particular industry and how it affects business profitability (B2U â Business-to-you.com, 2019). In this case, in order to stay competitive A2 Milk need to consider factors such as government policies and contract law. Government policies will affect the supply of milk. If government wants to decrease the supply of milk, farmers needs to decrease the extraction of milk. This will affect the profitability of the business. Another factor would be contract law. Contract law is enforced by the government to ensure that companies know what they should do and what they should not. For example, some countries will prohibit milk that are not natural or some criteria needs to be fulfilled. This will discourage business and affect their profitability. However, to increase the profitability of business, China-Australia Free Trade Agreement (ChAFTA) was introduced in December 2015, aim to support economic growth, job creation and higher living standards. So this creates an opportunity for the company to grow and prosper (Austrade.gov.au, 2019). Economic>
he macro-environment is analysed by using PESTEL Analysis. It is a framework used to analyze and monitor the macro-environmental factor that has insightful impact on an organizationâs performance, particularly in the future to determine opportunities and threats. Political Political factor is all about how and to what extend a government intervenes in the economy or a particular industry and how it affects business profitability (B2U â Business-to-you.com, 2019). In this case, in order to stay competitive A2 Milk need to consider factors such as government policies and contract law. Government policies will affect the supply of milk. If government wants to decrease the supply of milk, farmers needs to decrease the extraction of milk. This will affect the profitability of the business. Another factor would be contract law. Contract law is enforced by the government to ensure that companies know what they should do and what they should not. For example, some countries will prohibit milk that are not natural or some criteria needs to be fulfilled. This will discourage business and affect their profitability. However, to increase the profitability of business, China-Australia Free Trade Agreement (ChAFTA) was introduced in December 2015, aim to support economic growth, job creation and higher living standards. So this creates an opportunity for the company to grow and prosper (Austrade.gov.au, 2019). Economic>
