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Jon establishes a long position of one T-bond future today for a settlement price of 101'02. The exchange requires an initial mar maintenance margin of $2500. his contract price next day is: Day 1: settlement price101'04 The margin account balance at the end of Day 1 is dollars Numeric Response and

Jon establishes a long position of one T-bond future today for a settlement price of 101'02. The exchange requires an initial mar maintenance margin of $2500. his contract price next day is: Day 1: settlement price101'04 The margin account balance at the end of Day 1 is dollars Numeric Response and

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
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**Margin Account Calculation Example** Jon establishes a long position of one T-bond future today for a settlement price of 101'02. The exchange requires an initial margin of $2700 and a maintenance margin of $2500. His contract price the next day is: - **Day 1 settlement price**: 101'04 **Question:** The margin account balance at the end of Day 1 is ____ dollars. **Instructions:** - Use the numerical response box provided to enter your answer. **Note:** There are no graphs or diagrams in this content. This example helps learners understand the concepts of futures trading, initial margins, maintenance margins, and how daily settlements affect account balances.
Transcribed Image Text:**Margin Account Calculation Example** Jon establishes a long position of one T-bond future today for a settlement price of 101'02. The exchange requires an initial margin of $2700 and a maintenance margin of $2500. His contract price the next day is: - **Day 1 settlement price**: 101'04 **Question:** The margin account balance at the end of Day 1 is ____ dollars. **Instructions:** - Use the numerical response box provided to enter your answer. **Note:** There are no graphs or diagrams in this content. This example helps learners understand the concepts of futures trading, initial margins, maintenance margins, and how daily settlements affect account balances.
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