1. (6 pts) If the maintenance margin is $2,700, will a margin call result? If so, on which day? How much will Mike be required to deposit into his account?

2. (8 pts) Suppose a trader sells 5  S&P 500 e – mini contracts for one month out at a value of 2871.68. At the settlement date, the S&P 500 index is at 2999. What is the traders total profit or loss?

3. (8 pts) Suppose a trader sells 5  S&P 500 e – mini contracts for one month out at a value of 2871.68. At the settlement date, the S&P 500 index is at 2825.3 What is the traders total profit or loss?

Answer rating: 100% (QA)

6 pts To determine if a margin call will result we need to calculate the maintenance margin ratio an... View the full answer