7. A trader takes a short position of 5 contracts in the FTSE futures contract at...
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7. A trader takes a short position of 5 contracts in the FTSE futures contract at the close of trade. One contract is for £10 times the index. The futures contract has a maintenance margin of £1000 and initial market of £1500 per contract. The index futures price increases from 1175 to 1185 over the course of the first trading day (close to close). What is the balance in the trader's margin account at the end of the first day? 7. A trader takes a short position of 5 contracts in the FTSE futures contract at the close of trade. One contract is for £10 times the index. The futures contract has a maintenance margin of £1000 and initial market of £1500 per contract. The index futures price increases from 1175 to 1185 over the course of the first trading day (close to close). What is the balance in the trader's margin account at the end of the first day?
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Answer rating: 100% (QA)
Loss due to increase in price 1185 1175 10 Loss per contract 1010 100 Total loss 1005 500 Margin aft... View the full answer
Related Book For
Thermodynamics for Engineers
ISBN: ?978-1133112860
1st edition
Authors: Kenneth A. Kroos, Merle C. Potter
Posted Date:
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