Suppose the S&P 500 index futures price is currently 1200. You wish to purchase four futures contracts

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Suppose the S&P 500 index futures price is currently 1200. You wish to purchase four futures contracts on margin.

a. What is the notional value of your position?

b. Assuming a 10% initial margin, what is the value of the initial margin? Discuss with calculation.

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Derivatives Markets

ISBN: 9789332536746

3rd Edition

Authors: Robert McDonald

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Question Posted: Aug 12, 2015 02:33 AM

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Suppose the S&P 500 index futures price is currently 1200. You wish to purchase four futures contracts

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a The notional value of four contracts is 4 250 1200 1200000 beca...View the full answer

Derivatives Markets

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