Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You have opened a futures trading account with cash deposit just enough to pay the initial margin for a short 1 contract of Kospi200 June
You have opened a futures trading account with cash deposit just enough to pay the initial margin for a short 1 contract of Kospi200 June futures. Which price level (at market close) would trigger a margin call before others? (1) 340; (2) 345; (3) 350; (4) 355; (5) 360; (6) 365; (7) 370; (8) 375; (9) 380; (10) 385; [Price moves continuously. Margin ratio is based on the contract value of the futures position.] Kospi200 350 Kospi200 June futures 352 Contract multiplier = W 250,000 Initial margin 16% Maintenance margin 12%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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