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8. Suppose an investor has a $2 million long position in T-bond futures. The investors broker requires a maintenance margin of 5 percent, which is

8. Suppose an investor has a $2 million long position in T-bond futures. The investors broker requires a maintenance margin of 5 percent, which is the amount currently in the investors account. (10 points) a. Suppose that the value of the futures contracts drops by $80,000 to $1,920,000. How much will the investor be required to maintain his margin? What will be the value of the investors account balance (assuming no excess) as a result of the price drop?

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