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Suppose that the initial margin for a futures contract is $24,600 and the maintenance margin is $18,000. If you short one futures contract and you
Suppose that the initial margin for a futures contract is $24,600 and the maintenance margin is $18,000. If you short one futures contract and you have $19,500 in your margin account at the beginning of the day. Assume that the settlement price is $0.25 higher than yesterdays settlement price. What happens to your margin account if the contract size is 10,000? Will you have to put money into your account? If so, how much? Will money be put into your account? If so, how much? Show your work.
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