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9. Suppose the S&P 500 index is currently at 2800 and the initial margin for a futures contract is 15% of the notional amount. You

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9. Suppose the S\&P 500 index is currently at 2800 and the initial margin for a futures contract is 15% of the notional amount. You wish to enter into 6 of these contracts. The margin balance earns 8% (compounded continuously). a. What is the notional amount and initial margin? b. What is the margin balance after one week (1/52yr.) if the index at that time is 2830 (weekly settlements)? c. If the maintenance margin is 80% of the initial balance, what must the index drop to trigger a margin call at the end of week 1

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