Question: Ethel and Egbert have decided to invest in the futures
Ethel and Egbert have decided to invest in the futures market. Both entered into 1,000 futures contracts, which required a $30,000 initial margin. The maintenance margin for each investor is $22,500. Ethel and Egbert disagree about the future so Ethel went long while Egbert went short. Estimate each investor’s daily profit (loss) and equity position (assuming no cash deposits orwithdrawals).
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