Sally decides to buy a Treasury note futures contract for delivery of $100,000 face amount in December, at a price of 110′2.0. At the same time, Scott decides to sell a Treasury note futures contract if he can get a price of 110′2.0 or higher.

The exchange, in turn, agrees to sell one Treasury note contract to Sally at 110′2.0 and to buy one contract from Scott at 110′2.0. The price of the Treasury note increases to 110′21.0.


Calculate Sally's balance on margin account. Assume that initial margin is $1,890.   

Answer rating: 100% (QA)

To calculate Sallys balance on margin account we need to first determine her profit or loss on the f... View the full answer