10 Year Treasury Note Futures contract is purchased at a price of 103 per contract. The initial margin requirement is $3,100 per contract and the maintenance margin requirement is $2.600 per contract. $10,000 is deposited in the account. The futures price changes to 99 and 20/32 per contract. The trading fees are 2.50 per contract. The futures contract is not sold. What is the margin excess or call after the change in price?
10 Year Treasury Note Futures contract is purchased at a price of 103 per contract. The initial margin requirement is $3,100 per contract and the maintenance margin requirement is $2.600 per contract. $10,000 is deposited in the account. The futures price changes to 99 and 20/32 per contract. The trading fees are 2.50 per contract. The futures contract is not sold. What is the margin excess or call after the change in price?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Finance
A 10 Year Treasury Note Futures contract is purchased at a price of 103 per contract. The initial margin requirement is $3,100 per contract and the maintenance margin requirement is $2.600 per contract. $10,000 is deposited in the account. The futures price changes to 99 and 20/32 per contract. The trading fees are 2.50 per contract. The futures contract is not sold. What is the margin excess or call after the change in price?
Answer Choices:
A.) $5,750 Margin Call
B.) $4,028 Margin Excess
C.) $7,400 Margin Excess
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