The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently
Question:
a. How much margin must be put up for each contract sold?
b. If the futures price falls by 1% to 1,782, what will happen to the margin account of an investor who holds one contract?
c. What will be the investor's percentage return based on the amount put up as margin?
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a The dollar value of the index is 250 1800 450000 Therefore the posi...View the full answer
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Related Book For
Essentials of Investments
ISBN: 978-0077835422
10th edition
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
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