On October 1st, ABC Corporation goes long 5 steel futures contracts to hedge its planned purchase...

 

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On October 1st, ABC Corporation goes long 5 steel futures contracts to hedge its planned purchase of steel in three months time. Each futures contract is for delivery of 2 tons of steel; the contract has an initial margin of 100 and a maintenance margin of 75. The spot price on October 1st is 105 per ton and the futures price is 101. On October 2nd the spot price of steel is 102 per ton and the futures price is 97. What is the amount in the margin account of ABC Corporation on October 2nd? On October 1st, ABC Corporation goes long 5 steel futures contracts to hedge its planned purchase of steel in three months time. Each futures contract is for delivery of 2 tons of steel; the contract has an initial margin of 100 and a maintenance margin of 75. The spot price on October 1st is 105 per ton and the futures price is 101. On October 2nd the spot price of steel is 102 per ton and the futures price is 97. What is the amount in the margin account of ABC Corporation on October 2nd?

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