Question
Assume now that the trade went in the opposite direction ( it goes down) for that specified in part c( the contract closed at $2700).
Assume now that the trade went in the opposite direction ( it goes down) for that specified in part c( the contract closed at $2700). At what contract price would you have gotten a margin call? Explain.
The initial margin is $24,750
The maintenance requirement is $22,500
So$2250/$250= $9 per unit. How to calculate the contract price in this case?
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Financial Management Principles and Application
Authors: Arthur J. Keown, J. William Petty, David F. Scott, Jr.
10th edition
536514119, 536514110, 978-0536514110
