On April 22, 2020 you observed the following S&P/TSX index futures quotes:

S&P/TSX 60 index futures:April 22, 2020.

( multiplier M = $100 )

Spot index value1850

June futures contract1820

September futures contract1805

December futures contract1785

a.Suppose on April 22, 2020 (Day 1), you sold one June futures contract for 1820. Your brokerage firm has set the initial margin requirement (IMR) to $5000 and the maintenance margin requirement (MMR) to $2500. Complete the following table by marking to the market your account with the brokerage firm for the next 10 trading days:

Transcribed Image Text:

DAY FUTURES PRICE GAIN/LOSS 1 1820 2 1830 3 1850 + 1865 5 1845 LO 19 1825 7 1805 8 1800 9 1780 10 10 1790 11 1770 CUMULATIVE MARGIN MARGIN GAIN/LOSS ACCOUNT DEPOSIT 0 5000 5000 DAY FUTURES PRICE GAIN/LOSS 1 1820 2 1830 3 1850 + 1865 5 1845 LO 19 1825 7 1805 8 1800 9 1780 10 10 1790 11 1770 CUMULATIVE MARGIN MARGIN GAIN/LOSS ACCOUNT DEPOSIT 0 5000 5000

Answer rating: 100% (QA)

SPTSX 60 Futures Marking to Market April 22 May 2 2020 Day FuturesPrice GainLoss per Contract Accoun... View the full answer