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Exercise 7 Chapter 10) a) Suppose Mohamed buys one $100,000 face value T-bond future from Chicago Board of Trade (CBOT) at the open price of

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Exercise 7 Chapter 10) a) Suppose Mohamed buys one $100,000 face value T-bond future from Chicago Board of Trade (CBOT) at the open price of 111'24. First day's close is 111'10, and second day's close is 110'16. Price quotes are in32nds as a percent of face value. Omar agrees to enter into the contract with an initial margin requirement of $3,000 and maintenance margin requirement of $2,500. Fill the missing figures in the table by marking this contract to market. Settle Underlying value Price Change Margin Account Open 111'24 3,000 First day 111'10, Second day 110'16 Margin Call (add cash) 3,000

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