A future trader enters into a Long Futures position on SP1200 stock index futures on 15...

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A future trader enters into a Long Futures position on SP1200 stock index futures on 15 March 2022, at the settlement price (index point) of 1235. The index multiplier is set at $25 and the initial margin requirement is $10,000. The clearinghouse has set the margin call for this future at 65% of the initial margin and there will be a margin call once the beginning balance falls below that threshold. Based on the given list of daily settlement prices, at which day has the trader received a margin call, and how much was the trader required to add(top-up) to his margin accounts upon the margin call? Day 15-Mar 16-Mar 17-Mar 18-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 24-Mar 25-Mar Beginning Funds balance deposited 0 $10,000 O a. On 24 March-$6,127 O b. On 21 March-$5,028 O c. On 19 March-$4,028 O d. On 23 March-$6,558 Settlement price (index Gain/loss $- point) 1235 1173 1326 1074 881 1030 1226 1324 1377 1281 1178 Ending balance $10,000 A future trader enters into a Long Futures position on SP1200 stock index futures on 15 March 2022, at the settlement price (index point) of 1235. The index multiplier is set at $25 and the initial margin requirement is $10,000. The clearinghouse has set the margin call for this future at 65% of the initial margin and there will be a margin call once the beginning balance falls below that threshold. Based on the given list of daily settlement prices, at which day has the trader received a margin call, and how much was the trader required to add(top-up) to his margin accounts upon the margin call? Day 15-Mar 16-Mar 17-Mar 18-Mar 19-Mar 20-Mar 21-Mar 22-Mar 23-Mar 24-Mar 25-Mar Beginning Funds balance deposited 0 $10,000 O a. On 24 March-$6,127 O b. On 21 March-$5,028 O c. On 19 March-$4,028 O d. On 23 March-$6,558 Settlement price (index Gain/loss $- point) 1235 1173 1326 1074 881 1030 1226 1324 1377 1281 1178 Ending balance $10,000

Answer rating: 100% (QA)

To determine the day on which the trader received a margin call we need to check when the beginning balance falls below the margin call threshold of 6... View the full answer