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At the end of one day a clearing house member is long 50 contra settlement price is $10,000 per contract. The original margin is $ On the following day the member becomes responsible for cleari ong contracts, entered into at a price of $9,800 per contract. The the end of this day is still $9,800. How much does the member ha margin account with the exchange clearing house? $0 $5,000 $10,000

At the end of one day a clearing house member is long 50 contra settlement price is $10,000 per contract. The original margin is $ On the following day the member becomes responsible for cleari ong contracts, entered into at a price of $9,800 per contract. The the end of this day is still $9,800. How much does the member ha margin account with the exchange clearing house? $0 $5,000 $10,000

Essentials Of Investments
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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At the end of one day a clearing house member is long 50 contracts, and the settlement price is $10,000 per contract. The original margin is $500 per contract. On the following day the member becomes responsible for clearing an additional 10 long contracts, entered into at a price of $9,800 per contract. The settlement price at the end of this day is still $9,800. How much does the member have to add to its margin account with the exchange clearing house? $0 $5,000 $10,000 $15,000
Transcribed Image Text:At the end of one day a clearing house member is long 50 contracts, and the settlement price is $10,000 per contract. The original margin is $500 per contract. On the following day the member becomes responsible for clearing an additional 10 long contracts, entered into at a price of $9,800 per contract. The settlement price at the end of this day is still $9,800. How much does the member have to add to its margin account with the exchange clearing house? $0 $5,000 $10,000 $15,000
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