3. Suppose that you buy a stock index futures contract at the opening price of 452.25 on...
Question:
3. Suppose that you buy a stock index futures contract at the opening price of 452.25 on July 1. The multiplier on the contract is 500, so the price is $500 (452.25) == $226,125. You hold the position open until selling it on July 16 at the opening price of 435.50. The initial margin requirement is $9,000, and the maintenance margin requirement is $6,000. Assume that you deposit the initial margin and do not withdraw the excess on any given day. Construct a table showing the charges and credits to the margin account. The daily prices on the intervening days are as follows:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
An Introduction To Derivatives And Risk Management
ISBN: 9780324321395
7th Edition
Authors: Don M. Chance, Roberts Brooks
Question Posted: