Answered step by step
Verified Expert Solution
Question
1 Approved Answer
You short one December futures contract when the futures price is $2,020 per unit (day 0). Each contract is on 100 units and the initial
You short one December futures contract when the futures price is $2,020 per unit (day 0). Each contract is on 100 units and the initial margin per contract that you provide is $4,000. The maintenance margin per contract is $3,000. During the next day(day 1) the futures price rises to $2,024 per unit. What is the balance of your margin account at the end of the day (day 1)? In the following day (day 2), the futures price decreases to $2,016 per unit. What is the balance of your margin account at the end of day 2?
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