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Poor Professor Smith, referred to jokingly as Lucky enters into the long position of 10 S&P 500 futures contracts. His brokerage firm requires an initial
Poor Professor Smith, referred to jokingly as "Lucky" enters into the long position of 10 S\&P 500 futures contracts. His brokerage firm requires an initial margin balance equal to 20% of his notional amount. The firm also has a maintenance margin requirement of 90% of his initial margin balance. His margin balance will earn 4% interest and is marked to market weekly. The S\&P 500 index futures price currently and at the end of the next two weeks are given below: Determine the amount of the margin call, if any, that "Lucky" Smith receives at the end of week 2
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