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The big S&P stock index futures contract trades only in the pit, whereas the E-mini S&P contract trades only electronically. The E-mini contract is worth

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The "big" S&P stock index futures contract trades only "in the pit," whereas the "E-mini S&P contract trades only electronically. The E-mini contract is worth 1/5 of the value of the "big" contract. The initial marginal for the contract is $13,200, and the maintenance margin is $12,000. 2a. On Dec. 1, 2020, the December E-mini contract closed at 3658. What was the total value represented by one E-mini S&P contract as of the day of that close? 2b. If you think the S&P Index is likely to go up in the near future, would you buy or sell an E-mini futures contract? 2c. Assume that in two weeks, the contract closes at 3500. What would be your profit or loss, given the action you answered for part b? 2d. Assume that the trade went against you, ie, the price of the contract goes down instead of up. At what contract price would you have gotten a margin call? How much additional margin will you need to deposit in your account?/span> The "big" S&P stock index futures contract trades only "in the pit," whereas the "E-mini S&P contract trades only electronically. The E-mini contract is worth 1/5 of the value of the "big" contract. The initial marginal for the contract is $13,200, and the maintenance margin is $12,000. 2a. On Dec. 1, 2020, the December E-mini contract closed at 3658. What was the total value represented by one E-mini S&P contract as of the day of that close? 2b. If you think the S&P Index is likely to go up in the near future, would you buy or sell an E-mini futures contract? 2c. Assume that in two weeks, the contract closes at 3500. What would be your profit or loss, given the action you answered for part b? 2d. Assume that the trade went against you, ie, the price of the contract goes down instead of up. At what contract price would you have gotten a margin call? How much additional margin will you need to deposit in your account?/span>

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