Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Margin call help please with work shown 2. A T-bond futures contract has a face value of $100,000, currently it is priced at 109-12. The

Margin call help please with work shown image text in transcribed
2. A T-bond futures contract has a face value of $100,000, currently it is priced at 109-12. The initial margin is 3,713, and maintenance margin is $2,750. Mark longs ten T-note futures contract and Cindy shorts ten T-note futures contract. Monday's close is 110-21, and Tuesday's close is 108-25. a. What are the margin balances for Mark and Cindy on Monday? Who will get a margin call, by how much? b. What are the margin balances for Mark and Cindy on Tuesday? Who will get a margin call, by how much

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 Bundling And Finance Transformation

Authors: Frank Keuper, Kai-Eberhard Lueg

1st Edition

3658042109, 978-3658042103

More Books

Students also viewed these Finance questions

Question

b. Did you suppress any of your anger? Explain.

Answered: 1 week ago