The initial margin requirement of an interest rate futures contract is 12% with a price of...
The initial margin requirement of an interest rate futures contract is 12% with a price of $149,841. The futures is worth $125,000 per contract. The percentage profit/loss of the investor with a short position of this futures will be _________ if the futures price becomes $145,000.
Multiple Choice
A.37.92% loss
B. 37.92% profit
C. 26.92% profit
D. 26.92% loss
Homework Answers
Initial Margin = 0.12(149,841) = $17,980.92
Profit = (149,841 - 145,000) = $4,841
Profit % = 4,841/17,980.92
Profit % = 26.92%
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