Consider an investment that is long ten S&P Index futures contracts at a price of &2700.00. The initial margin requirement is $36,000 per contract and the maintenance margin is $30,000 per contract. The risk-free rate is zero.

(a)What is the notional value of your long exposure to the S&P 500 index?

(b) Upon opening the position you deposit the minimum initial margin required in your futures trading account, At what S&P 500 futures price will a margin call occur?

8. (10 points) Consider an investment that is long ten S&P 500 Index futures contracts at a price of $2,700.00. The initial margin requirement is $36,000 per contract and the maintenance margin is $30,000 per contract . The risk-free rate is zero. (a) (5 points) What is the notional value of your long exposure to the S&P 500 index? (b) (5 points) Upon opening the position you deposit the minimum initial margin re- quired in your futures trading account. At what S&P 500 futures price will a margin call occur