Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the close of futures trading on February 8 , 2 0 2 4 , a clearing house member is long 1 0 0 contracts

At the close of futures trading on February 8,2024, a clearing house member is long 100 contracts and the settlement price is $50,000 per contract. The original margin is $2,500 per contract. On February 9,2024, the member becomes responsible for clearing an additional 20 long contracts, entered into at a price of $52,000 per contract. The settlement price for February 9,2024 is $51,000. How much does the member have to add to its margin account with the exchange clearing house? (Note that the clearing house member would typically be handling multiple retail trading clients. This question is about a clearing house member, not an individual trader.)
(Enter your answer in round dollars without a comma, ex.22,000 should be entered as "22000")
Answer
image text in transcribed

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 Freelancers Financial Intelligence

Authors: Andrew Holmes

1st Edition

1408101165, 978-1408101162

More Books

Students also viewed these Finance questions