Prices of a futures contract for 5 consecutive trading-days are provided in the table below. The initial margin requirement is set at $6.00 per contrac and the maintenance margin is $3.60 per contract. Futures Price Day 0 $120 1 $118 2 $117 3 $119 4 $123 5 $125 On day 0, a trader enters into a short position for 15 contracts. The ending balance for the margin account on day 5 is closest to: O a. $15. O b. $210. OC. None of the above. O d. $60.

Prices of a futures contract for 5 consecutive trading-days are provided in the table below. The initial margin requirement is set at $6.00 per contrac and the maintenance margin is $3.60 per contract. Futures Price Day 0 $120 1 $118 2 $117 3 $119 4 $123 5 $125 On day 0, a trader enters into a short position for 15 contracts. The ending balance for the margin account on day 5 is closest to: O a. $15. O b. $210. OC. None of the above. O d. $60.

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

Prices of a futures contract for 5 consecutive trading-days are provided in the table below. The initial margin requirement is set at $6.00 per contract
and the maintenance margin is $3.60 per contract.
Futures Price
Day
0
$120
1
$118
2
$117
3
$119
4
$123
$125
5
On day 0, a trader enters into a short position for 15 contracts. The ending balance for the margin account on day 5 is closest to:
O a. $15.
O b. $210.
O C. None of the above.
O d. $60.

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