Question
An investor buys a 90-day Eurodollar futures contract at 95.25. The next day, interest rates rise to 5.25%. Which of the following is true if
An investor buys a 90-day Eurodollar futures contract at 95.25. The next day, interest rates rise to 5.25%. Which of the following is true if the difference between the initial margin and maintenance margin is $1000? More than one answer may be possible.
The investor receives a margin call and must place $1250 in their account to maintain their position | ||
The investor's margin account declined by $250 in value | ||
The investor receives a margin call and must place $250 in their account to maintain their position | ||
The investor's margin account declined by $1250 in value |
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