Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Today, a SFr future contract has the settlement price of $1.72/SFr at CME. The initial and maintenance margin are 150,000 USD and 100,000 USD of
Today, a SFr future contract has the settlement price of $1.72/SFr at CME. The initial and maintenance margin are 150,000 USD and 100,000 USD of the contract value of 1,000,000 SFr in that order. The next five days' settlement prices are $1.85, $1.90, $1.70, $1.65 and $1.55.
1. In case of long position, what will the result in the balance of margin account after five days will be? (1 mark)
2. How much you have to pay more into margin account to maintain the long futures contract: (1 mark)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started