The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently

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The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently 800. Each contract has a multiplier of $250. How much margin must be put up for each contract sold? If the futures price falls by 1% to 792, what will happen to the margin account of an investor who holds one contract? What will be the investor’s percentage return based on the amount put up as margin?

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Essentials Of Investments

ISBN: 9780697789945

8th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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