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The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently 1,800. Each contract has a multiplier of $250.
The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently 1,800. Each contract has a multiplier of $250. Note: The value of a futures contract on an index is the multiplier times the stock index. a. How much margin must be put up for each contract sold? Margin b. If the futures price falls by 2% to 1,764, what will happen to the margin account of an investor who holds one contract? (Input the amount as a positive value.) Margin account (Click to select) V 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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