Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Today I short 1 contract of the March 2020 E-mini S&P 500 future (whose underlying is 50*S&P 500 index. That is, one contract gives me

image text in transcribed
Today I short 1 contract of the March 2020 E-mini S&P 500 future (whose underlying is 50*S&P 500 index. That is, one contract gives me the exposure of 50 times the change in S&P index. For more information, refer to http:// www.cmegroup.com/trading/equity-index/us-index/e-mini-sandp500_contract_specifications.html). Suppose I put down an initial margin of 10,000. If tomorrow the future price goes up by 30 points. What is the balance of my margin account? 8500 9970 3 10030 11500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Critical Handbook Of Money Laundering Policy Analysis And Myths

Authors: Petrus C. Van Duyne, Jackie H. Harvey, Liliya Y. Gelemerova

1st Edition

1137523972, 978-1137523976

More Books

Students also viewed these Finance questions