Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

An investor has a $1 million long position in T-bond futures. The investors broker requires a maintenance margin of 4.25%. Next day the value of

An investor has a $1 million long position in T-bond futures. The investors broker requires a maintenance margin of 4.25%. Next day the value of the futures contracts drops by $30,000 to $970,000. By what amount he will receive a margin call?

NOT ENOUGH DATA TO ANSWER

$28,650

$45,000

$28,725

$30,000

$43,650

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Executives Managing For Value Creation

Authors: Gabriel Hawawini, Claude Viallet

3rd Edition

0324274319, 9780324274318

More Books

Students also viewed these Finance questions