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The margin requirement on the S&P 500 futures contract is 16%, and the stock index is currently 1,400. Each contract has a multiplier of
The margin requirement on the S&P 500 futures contract is 16%, and the stock index is currently 1,400. Each contract has a multiplier of $50. a. How much margin must be put up for each contract sold? Margin $ 11,200 b. If the futures price falls by 2% to 1,372, what will happen to the margin account of an investor who holds one contract? (Input the amount as a positive value.) Margin account decreases by c-1. What will be the investor's percentage return based on the amount put up as margin? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Percentage return % c-2. What would be the current cash balance in the margin account? Cash balance
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