Question
URGENTTSSS PLEASES ANSWER QUICK WILL GIVE THUMBS UP Suppose the S&P 500 is currently at 3750. Johhny wants to enter into four futures contracts. The
URGENTTSSS PLEASES ANSWER QUICK
WILL GIVE THUMBS UP
Suppose the S&P 500 is currently at 3750. Johhny wants to enter into four futures contracts. The initial margin is 25%, and the maintenance margin is 75%. The margin balance earns 4% interest. The initial margin is considered the maintenance margin on day 0. Round your numerical answers to the nearest dollar.
C5: What is the notional amount?
C5: What is the initial margin?
C5: How much is the maintenance margin?
C5: What is the margin balance if on day 1 the index is 3850?
C5: How low must the index drop to trigger a margin call on day 1?
C5: Suppose on day 1 the margin drops to 3300, and the margin call is triggered. How much does Johnny have to deposit?
C5: Suppose at the end of day 1, the margin balance is 800,000. How much is added to Johnnys maintenance margin?
C5: Suppose at the end of day 1, the index does not change. What is the new margin balance?
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