a.Assume now that the trade went in the opposite direction for that specified in part c. At what contract price would you have gotten a margin call? Explain. How much additional margin will you need to deposit in your account? Explain

b. If you think the S&P index is likely to go up in the near future, would you buy or sell an S&P futures contract?

c.Assume that in two weeks, the contract closes at 3200. What would be the dollar amount of your profit or loss, given the action you answered for part b? Explain how you arrived at your answer.

d. Currently, the initial margin requirement for an S&P futures contract is $34,650, and the maintenance margin requirement is $31,500.

Given the profit you found in part c, calculate your percentage profit on the trade, given what you had invested (the initial margin requirement)

e. Assume now that the trade went in the opposite direction for that specified in part c. At what contract price would you have gotten a margin call? Explain. How much additional margin will you need to deposit in your account? Explain

Answer rating: 100% (QA)

A Contract size of SP Futures is 250 units hence total value represented by on... View the full answer