. Suppose the S&P-500 index futures price is currently 950 (with a contract multiplier of $250) and the initial margin is 10%. You wish to enter into 10 S&P-500 futures contracts. (a) What is the notional value of your position? What is the margin? Answer: notional value $2,375,000, margin $237,500 (b) Suppose you earn a continuously compounded rate of 6% on your margin balance, your position is marked to market weekly, and the maintenance margin is 80% of the initial margin. What is the greatest S&P-500 index futures price 1 week from today at which you will receive a margin call? Answer: $930.89 Hint: The maintenance margin is 190,000. In order to receive a margin call, we need 237, 500e006/52 + (ST-950) 250 10