Futures Contracts Assignment | Homework For You
February 20th, 2020
You sell two December futures contracts when the futures price is $1,200 per unit. Each contract is on 100 units and the inital margin per contract that you provide is $3,500. The maintenance margin per contract is $1,500. During the next day, the futures price rises to $1,222 per unit.
- What is the balance of your margin account (before the margin call, if there is any) at the end of the day?
- Does the account balance require a margin call?
- If so, how much additional money do you have to provide by the end of next day? Get Finance homework help today