5000       1     4960       2     4800       3     5050       4     5175       5     5200

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter11: Venture Capital Valuation Methods
Section: Chapter Questions
Problem 7DQ
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  1. Complete the table above for the holder of the short position.

 

Day

Beginning Balance

Funds Deposited

Settlement Price

Futures Price Change

Gain/Loss

Ending Balance

0

0

 

5000

 

 

 

1

 

 

4960

 

 

 

2

 

 

4800

 

 

 

3

 

 

5050

 

 

 

4

 

 

5175

 

 

 

5

 

 

5200

 

 

 

6

 

 

5250.50

 

 

 

7

 

 

5310.75

 

 

 

 

2. How much are the total gains or losses by the end of day 7?

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