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Determine the account value (rounded to the nearest integer) in Oliver's margin account at the end of 6 days. O A. 104,942 O B. 105,000 OC. 105,008 O D. 105,058 O E. 105.070

Determine the account value (rounded to the nearest integer) in Oliver's margin account at the end of 6 days. O A. 104,942 O B. 105,000 OC. 105,008 O D. 105,058 O E. 105.070

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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You took the long position in a 6-month futures contract on 1,000 units of a stock index. The following are given: i) Your initial margin deposit was 45,000 ii) The continuously compounded interest rate is 5% iii) The contract is marked-to-market every day iv) The maintenance margin is 70% of the initial margin. The index futures price for 6 days is as follows: Day 0: 1200 Day 1: 1210 Day 2: 1220 Day 3: 1230 Day 4: 1240 Day 5: 1250 Day 6: 1260 Determine the account value (rounded to the nearest integer) in Oliver's margin account at the end of 6 days. O A. 104,942 О В. 105,000 O C. 105,008 O D. 105,058 O E. 105,070
Transcribed Image Text:You took the long position in a 6-month futures contract on 1,000 units of a stock index. The following are given: i) Your initial margin deposit was 45,000 ii) The continuously compounded interest rate is 5% iii) The contract is marked-to-market every day iv) The maintenance margin is 70% of the initial margin. The index futures price for 6 days is as follows: Day 0: 1200 Day 1: 1210 Day 2: 1220 Day 3: 1230 Day 4: 1240 Day 5: 1250 Day 6: 1260 Determine the account value (rounded to the nearest integer) in Oliver's margin account at the end of 6 days. O A. 104,942 О В. 105,000 O C. 105,008 O D. 105,058 O E. 105,070
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