suppose that Mr. Binda buys a three-month 5,000 contracts to buy 'commodity-X at a futures price of $1,000 from Mr. John. The contract requires an initial margin of $70 per contract and maintenance margin of $40 per contract. Required: a) Compute the initial margin that both Mr. Binda must deposit to the clearinghouse. b) Compute the maintenance margin that both Mr. Binda must deposit to the clearinghouse.
suppose that Mr. Binda buys a three-month 5,000 contracts to buy 'commodity-X at a futures price of $1,000 from Mr. John. The contract requires an initial margin of $70 per contract and maintenance margin of $40 per contract.
Required:
a) Compute the initial margin that both Mr. Binda must deposit to the clearinghouse.
b) Compute the maintenance margin that both Mr. Binda must deposit to the clearinghouse.suppose that Mr. Binda buys a three-month 5,000 contracts to buy 'commodity-X at a futures price of $1,000 from Mr. John. The contract requires an initial margin of $70 per contract and maintenance margin of $40 per contract.
Required:
a) Compute the initial margin that both Mr. Binda must deposit to the clearinghouse.
b) Compute the maintenance margin that both Mr. Binda must deposit to the clearinghouse.
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