2. Suppose the S&P 500 index is currently at 2800 and the initial margin for a futures contract is 15% of the notional amount. You wish to enter into 6 of these contracts. The margin balance earns 8% (compounded continuously).

If the maintenance margin is 80% of the initial balance, what must the index drop to trigger a margin?

What is the margin balance after one week (1/52 yr.) if the index at that time is 2830 (weekly settlements)?

What is the notional amount and initial margin?