Question
On Monday morning you buy one June Treasury-bond futures contract for $97,800. The contracts face value is $100,000. The initial margin and maintenance margin requirements
On Monday morning you buy one June Treasury-bond futures contract for $97,800. The contract’s face value is $100,000. The initial margin and maintenance margin requirements are $2,700 and $2,000, respectively, per contract. Use the following price data to answer the following questions. Day Settle (Closing) Price Monday $97,400 Tuesday $98,000 Wednesday $100,000 After Tuesday’s close the balance on your margin account will be ________. Hint: initial margin + (FT − F0)
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Step: 1
To calculate the balance on your margin account we need to calculate the gain or loss on the futures ...
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Introduction To Corporate Finance
Authors: Laurence Booth, Sean Cleary
3rd Edition
978-1118300763, 1118300769
