At the beginning of day 1, an investor takes many positions in futures contracts at Fo=...
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At the beginning of day 1, an investor takes many positions in futures contracts at Fo= $85. The initial margin is $20,000 per contract and the maintenance margin is $18,000 per contract. The table below shows the futures prices at the end of each trading day. The margin account is adjusted to reflect the investor's gain or loss at the end of each trading day. We assume that (1) the investor does not withdraw any balance in the margin account in excess of the initial margin and that (2) if the balance in the margin account falls below or is equal to the maintenance margin, there is a margin call and the investor must top up the margin account at th ginning of the next day. The investor closes out her position at the end of day 5. Margin Futures price Daily Gain Cummulative Account Date Future price changes (or loss) Gain (or loss) balance 2-Sep-23 85 6000 3-Sep-23 2 4-Sep-23 87.5 5-Sep-23 -3000 -6000 63000 6-Sep-23 2000 At the beginning of day 1, an investor takes many positions in futures contracts at Fo= $85. The initial margin is $20,000 per contract and the maintenance margin is $18,000 per contract. The table below shows the futures prices at the end of each trading day. The margin account is adjusted to reflect the investor's gain or loss at the end of each trading day. We assume that (1) the investor does not withdraw any balance in the margin account in excess of the initial margin and that (2) if the balance in the margin account falls below or is equal to the maintenance margin, there is a margin call and the investor must top up the margin account at th ginning of the next day. The investor closes out her position at the end of day 5. Margin Futures price Daily Gain Cummulative Account Date Future price changes (or loss) Gain (or loss) balance 2-Sep-23 85 6000 3-Sep-23 2 4-Sep-23 87.5 5-Sep-23 -3000 -6000 63000 6-Sep-23 2000
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