Question
Consider a hypothetical futures contract in which the current price is CHF 212. The initial margin is CHF 10 and the maintenance margin is CHF
Consider a hypothetical futures contract in which the current price is CHF 212. The initial margin is CHF 10 and the maintenance margin is CHF 8.You go Long 20 contracts and meet all margin calls but do not withdraw any excess margin.
-
At what price will a margin call be trigerred ?
-
Complete the Table below and explain any funds deposited. Assume that the contract is purchased at the settlement price of the day so there is no mark-to market profit or loss on the day of purchase (TIP: Funds deposited on day 0 is CHF 200 hence balance on same day is also CHF 200.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
10th Edition
0073530697, 9780073530697
