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Use the following chart to mark the contract to market: The initial margin requirement is $1000. The maintenance margin is $850. Assume you BOUGHT 1
- Use the following chart to mark the contract to market: The initial margin requirement is $1000. The maintenance margin is $850. Assume you BOUGHT 1 Futures contract.
| Day | Settle | Value | Cash Flow | Margin account Balance |
| Open (day 1) |
| 300 |
| 1000 |
| Close (day1) | 350 |
|
|
|
| Day 2 | 250 |
|
|
|
| Day 3 | 290 |
|
|
|
| Day 4 | 200 |
|
|
|
| Day 5 | 320 |
|
|
|
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
