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
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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Question
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F1094d29d-5ddc-466b-bf8d-09f4dadf5b74%2F67df1505-6272-4325-8192-d0b344ae0d97%2Fxpc8zlf_processed.png&w=3840&q=75)
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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