Suppose you enter into 10 E-mini FTSE Emerging Index Futures contracts. The index value is at...
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Suppose you enter into 10 E-mini FTSE Emerging Index Futures contracts. The index value is at 475 and the contract multiplier is 50. a. If the initial margin requirement is 10%, how much must you deposit with your broker? (Only enter numbers, no $ signs or commas.) Required margin deposit b. If the futures price increases by 1%, and you have a long position, what percentage return will you earn on your investment (margin deposit)? (Enter as percent without the % sign. Enter positive numbers for profit, and negative numbers for a loss) Percentage return on net investment % c. If the maintenance margin is 8%, what is the futures price below which you would receive a margin call? (Round to 2 decimal places.) Futures price at margin call Suppose you enter into 10 E-mini FTSE Emerging Index Futures contracts. The index value is at 475 and the contract multiplier is 50. a. If the initial margin requirement is 10%, how much must you deposit with your broker? (Only enter numbers, no $ signs or commas.) Required margin deposit b. If the futures price increases by 1%, and you have a long position, what percentage return will you earn on your investment (margin deposit)? (Enter as percent without the % sign. Enter positive numbers for profit, and negative numbers for a loss) Percentage return on net investment % c. If the maintenance margin is 8%, what is the futures price below which you would receive a margin call? (Round to 2 decimal places.) Futures price at margin call
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a To calculate the required margin deposit you need to multiply the index value by the contract mult... View the full answer
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