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Assume the settlement price on a T-Bond futures contract is 102 and the margin requirement is 7. Track the margin account value given the following
Assume the settlement price on a T-Bond futures contract is 102 and the margin requirement is 7. Track the margin account value given the following assumptions about the daily closing prices of the futures contract. You sold the contract with a settlement price of 102.
Did you take a long or a short position?
Complete the table below.
DAY | CLOSING PRICE | CHANGE IN MARGIN ACCOUNT | MARGIN ACCOUNT VALUE |
0 | 102 | ---------- | 7 |
5 | 101 | ||
15 | 102 | ||
30 | 100 | ||
EXPIRATION DATE | 100 | ||
GAIN (LOSS) | ------------ | ------------ |
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