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The face value of a CME BTC futures is 5 bitcoins. The current price of bitcoin is $20, 000. Assume the Initial margin is $25,000 and the maintenance margin is $20, 000. An investor sells a CME BTC futures at $27,500. The next day the futures price is $30, 000. What is margin account balance of the investor. A. C. $12, 500 $25,000. B. $20,000 D. $27, 500.

The face value of a CME BTC futures is 5 bitcoins. The current price of bitcoin is $20, 000. Assume the Initial margin is $25,000 and the maintenance margin is $20, 000. An investor sells a CME BTC futures at $27,500. The next day the futures price is $30, 000. What is margin account balance of the investor. A. C. $12, 500 $25,000. B. $20,000 D. $27, 500.

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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9) This is an exercise about financial futures. Can you please check the picture and answer the question? Only one option is right (A, B, C, or D).

The face value of a CME BTC futures is 5 bitcoins. The current price of bitcoin is $20, 000. Assume the Initial margin is $25, 000 and the maintenance margin is $20, 000. An investor sells a CME BTC futures at $27,500. The next day the futures price is $30, 000. What is margin account balance of the investor. A. C. $12, 500 $25,000. B. $20, 000 D. $27, 500.
Transcribed Image Text:The face value of a CME BTC futures is 5 bitcoins. The current price of bitcoin is $20, 000. Assume the Initial margin is $25, 000 and the maintenance margin is $20, 000. An investor sells a CME BTC futures at $27,500. The next day the futures price is $30, 000. What is margin account balance of the investor. A. C. $12, 500 $25,000. B. $20, 000 D. $27, 500.
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