Assume the initial margin on a Eurodollar futures contract is $878 and the maintenance margin is $650
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Assume the initial margin on a Eurodollar futures contract is $878 and the maintenance margin is $650 (the contract size is $1mln). If the contract price declines by 25 basis points, by how much do the long and short positions’ margin balances change? Which position, if any, gets a margin call?
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For each change in a basis point the contract value ...View the full answer
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Related Book For
Financial Institutions, Markets and Money
ISBN: 978-1119330363
12th edition
Authors: David S. Kidwell, David W. Blackwell, David A. Whidbee, Richard W. Sias
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