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a) An index futures contract is currently at 4125 . One contract is for delivery of $10 times the index, the initial margin is $4000

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a) An index futures contract is currently at 4125 . One contract is for delivery of $10 times the index, the initial margin is $4000 per contract and the maintenance margin is $3500 per contract. If the index futures price falls by 60 points, is there a margin call? (Assume long futures in this case). (10 marks)

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