Question: For the futures contract the initial margin account is 2% of the fully funded future which is 50000$ and the maintenance margin is 75% of

For the futures contract the initial margin account is 2% of the fully funded future which is 50000$ and the maintenance margin is 75% of the initial margin. The future loses 0.2% of its value. Assuming I have an account with clearing house how much I will be forced to contribute to my account?

Hint: You don't need to know the Futures price I give u the fully funded account

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The initial margin requirement for the futures contract is 2 of the fully funded future which is 500... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

IST 8100 Supplemental Cases Inside Microsoft During last fall's United Way campaign at Microsoft, two vice-presidents made a wager on whose division would generate the most contributions. The loser,...

You are the controller/treasurer for a small import-export company. You make all the finance and accounting decisions. Your company makes sales in Germany, Poland, and the Czech Republic....

The figure shows the oxygen level P (for purity) in a lake t months after an oil spill. (a) Which of A, B, and C is the point of inflection for the graph? (b) On which side of C is d2 P/ dt2 Ë...

You want to buy a new laptop computer and have obtained pricing information from two major retailer& Retailer A is offering a "no money down no interest" event You would pay $162.50 at the end of...

A Japanese corporation recently sold one of its lines of business and would like to use the cash to retire the debt liabilities that financed those assets. Summary statistics for the multiple debt...

1. Identify the stage of the life cycle that best describes Cory and Tisha today. What important financial planning issues characterize this stage? 2. Based on the issues identified in Question 1 and...

One can only imagine the high expectations of investors when the board of directors of CUC International, Inc. and HFS, Inc. agreed to merge in May 1997 to form Cendant Corporation. The $\$ 14$...

General Motors (GM) disclosed in a Form 8-K filed in November Year 2, that it would restate its financial statements to correct the accounting for credits and other lump-sum payments from suppliers....

Mountain Views citizens authorized the construction of a new library. As a result of this project, the city had the following transactions during 2018: a. On January 3, 2018, a $600,000 serial bond...

It is well established that indoor air quality (IAQ) has a significant effect on general health and productivity of employees at a workplace. A study showed that enhancing IAQ by increasing the...

Assessment Details This Coursework comprises 30% of the total assessments marks. It contains one component of coursework. This will develop the following skills: Analytical skills. The analysis...

Complete the following steps for the given function f and interval. a . For the given value of n , use sigma notation to write the left, right, and midpoint Riemann sums. Then evaluate each sum using...

On 1st November 2022 Giogio Makali a maize farmer offered to sell his maize harvest totaling 2500, 90kg bags to XYZ Ltd a milling company at K.Shs.3,000/= per bag through email, which email indicated...

Mr G is an accountant. Mr. G is 47 years old and is married to Claire who is 45 years old and blind. She has Net Income For Tax Purposes in 2020 of $9,000, all of which is interest on investments she...

You have been approached by a local zoo to help develop a software application that can be used to train their employees about the various needs and costs associated with different animal species....

The time-series graphs below show typical simulation output. For each graph identify the type of model (terminating or nonterminating) and the nature of the simulation output (transient,...

As one of the leaders, consider planning and managing this summiting and returning safely to Base Camp - project using Agile or a Hybrid approach and all of its tools and techniques at your command....

Firms sitting down and setting prices together is:Group of answer choiceslegalmarket concentrationillegalstrategic interdependence

Java Cafes tax rate is 45 percent and the appropriate discount rate is 8 percent. It is considering another project. Each asset class consists only of the project asset and will be terminated at the...

Apex Financial Ltd. has completed a fundamental analysis of Spark Energy Inc. Spark Energy is a young company and expects to invest heavily in facilities and research and development during the next...

BigCo Manufacturing Company is also debating whether to invest in Project H (a three-year project) or Project D. Project H has cash flow of $3,000, $1,500, $1,200, and $750 in years 0, 1, 2, and 3....

In Year 1, as a result of routine testing, a city discovers that local wells are polluted. Investigation reveals that the source of the contamination is an abandoned waste dump...

What is a cost-sharing plan? Under the new rules, what will an employer that is a member of a cost-sharing plan have to report as a pension obligation?

What follows are the statement of revenues, expenses, and changes in net position, and the statement of cashows for Tucson, Arizona's eet services internal service fund. 1. How do you account for the...