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A futures contract will mature in one time step. The current return over one time-step is R=1.08 and the underlying asset of the future contract
A futures contract will mature in one time step. The current return over one time-step is R=1.08 and the underlying asset of the future contract is currently worth $28 and has up factor u=1.3 and down factor d=0.8. The margin account for the short side of this futures contract currently holds $12. How much will the margin account hold when the futures contract matures if the underlying asset increases in value
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