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(10 pts) An investor goes long a 6-month futures contract on 100 units of stock index XYZ. He makes an initial deposit of $25,000 in
(10 pts) An investor goes long a 6-month futures contract on 100 units of stock index XYZ. He makes an initial deposit of $25,000 in his margin account. The contract is marked-to-market and settled at the end of each week. The initial value of the XYZ index is 1000. The following table shows the index futures price for the first 4 weeks: Week Futures Price, End of Week 0 1000 1 1002 2 995 3 998 4 975 (A) Determine the amount in an investor's account at the end of 3 weeks. (B) At the end of week 4, the investor will get a margin call. How much does the investor need to put an additional money to his account in order to bring the amount into a required initial margin of $ 25,000
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