Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A future trader enters into a Long Futures position on SP1200 stock index futures on 15 March 2022, at the settlement price(index point) of 1235.
A future trader enters into a Long Futures position on SP1200 stock index futures on 15 March 2022, at the settlement price(index point) of 1235. The index multiplier is set at $25 and the initial margin requirement is $10,000. The clearinghouse has set the margin call for this future at 65% of the initial margin and there will be a margin call once the beginning balance falls below that threshold. Based on the given list of daily settlement prices, at which day has the trader received a margin call, and how much was the trader required to add(top-up) to his margin accounts upon the margin call? Settlement Beginning Funds Day price (index Gain/loss Ending balance balance deposited point) 15-Mar 0 $10,000 1235 $- $10,000 16-Mar 1173 17-Mar 1326 18-Mar 1074 19-Mar 881 20-Mar 1030 21-Mar 1226 22-Mar 1324 23-Mar 1377 24-Mar 1281 25-Mar O a. On 24 March-$6,127 O b. On 21 March-$5,028 O c. On 19 March-$4,028 O d. On 23 March-$6,558 1178
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started