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Assume that you deposit the initial margin and do not withdraw the excess on any given day. Whenever a margin call occurs on Day t,
Assume that you deposit the initial margin and do not withdraw the excess on any given day. Whenever a margin call occurs on Day t, you would make a deposit to bring the balance up to meet the initial margin requirement at the start of trading on Day t+1, i.e., the next day.
a.What are the initial margin and maintenance margin on your margin account?
(1 mark)
b.Fill the appropriate numbers in the blank cells in the following table. ((4 marks)
c.What is your total profit after you closed out your position?
?
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