Question: An investor enters into a short position in 50 000 futures
An investor enters into a short position in 50,000 futures contracts that requires a $50,000 initial margin and has a maintenance margin that is 75 percent of this amount. The futures price associated with this contract is $20. Assume the spot price of the underlying asset closes at the following prices for the next five days: $20.50, $20.75, $21.00, $19.75, and $19.25. Estimate the daily profit (loss) for this investor, as well as the equity position, assuming no cash deposits or withdrawals are made from the account.
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