The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently
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The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently 1,200. Each contract has a multiplier of $250. How much margin must be put up for each contract sold? If the futures price falls by 1% to 1,188, what will happen to the margin account of an investor who holds one contract? What will be the investor's percentage return based on the amount put up as margin?
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Related Book For
Essentials of Investments
ISBN: 978-0078034695
9th edition
Authors: Zvi Bodie, Alex Kane, Alan Marcus
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