Suppose on March 1 you take a long position in a June T-bill futures contract at RD = 5%.

a. How much cash or risk-free securities would you have to deposit to satisfy an initial margin requirement of 5%?

b. Calculate the values of your equity account on the following days, given the following discount yields:

c. If the maintenance margin requirement specifies keeping the value of the equity account equal to 100% of the initial margin requirement each day, how much cash would you need to deposit in your commodity account each day?

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March 2 5.1% March 3 5.2% March 4 5.0% March 5 4.8% March 8 4.7% March 9 5.0%