Suppose the S&P 500 index futures price is currently 1200. You wish to purchase four futures contracts
Question:
Suppose the S&P 500 index futures price is currently 1200. You wish to purchase four futures contracts on margin.
a. What is the notional value of your position?
b. Assuming a 10% initial margin, what is the value of the initial margin? Discuss with calculation.
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a The notional value of four contracts is 4 250 1200 1200000 beca...View the full answer
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