Question
5. At the end of one day you have long 100 contracts, and the settlement price is $50,000 per contract. Assume that both the initial
5. At the end of one day you have long 100 contracts, and the settlement price is $50,000 per contract. Assume that both the initial and maintenance margins are the same $2,000 per contact. On the following day you took an additional 20 long contracts, entered into at a price of $51,000 per contract and put up appropriate margin. The settlement price at the end of this day is $50,200.
How much did you add to your margin account at the end of the day two because of marking to market?
a.) Nothing, I made zero profit
b.) Nothing, I made a profit of $20,000
c.) I had to put in $4,000 in my margin account
d.) I had to put in $20,000 in my margin account
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