You buy one December futures contracts when the futures price is $1,010 per unit. Each contract...
You buy one December futures contracts when the futures price is $1,010 per unit. Each contract is on 100 units and the initial margin per contract that you provide is $3,000. The maintenance margin per contract is $2,000. During the next day the futures price falls to $1,004 per unit. What is the balance of your margin account at the end of the day?
|
$3,200 |
||
|
$3,400 |
||
|
$3,600 |
||
|
$2,400 |
Homework Answers
| Initial margin | 3000 |
| (-) Loss due to fall in price [ (1010-1004)*100 ] | 600 |
| Margin account at the end of the day | 2400 |
| If you have any doubt then please ask |
| Please do rate the answer |
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