The margin requirement on the S&P 500 futures contract is 16%, and the stock index is currently 2,100. Each contract has a multiplier of $50 a. How much margin must be put up for each contract sold? Margin b. If the futures price falls by 1% to 2,079, what will happen to the margin account of an investor who holds one contract? (Input the amount as a positive value.) Margin account by c-1. What will be the investor's percentage return based on the amount put up as margin? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Percentage return ed ok at rices c-2. What would be the current cash balance in the margin account? Cash balance

The margin requirement on the S&P 500 futures contract is 16%, and the stock index is currently 2,100. Each contract has a multiplier of $50 a. How much margin must be put up for each contract sold? Margin b. If the futures price falls by 1% to 2,079, what will happen to the margin account of an investor who holds one contract? (Input the amount as a positive value.) Margin account by c-1. What will be the investor's percentage return based on the amount put up as margin? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal places.) Percentage return ed ok at rices c-2. What would be the current cash balance in the margin account? Cash balance

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The margin requirement on the S&P 500 futures contract is 16%, and the stock index is currently
2,100. Each contract has a multiplier of $50 a. How much margin must be put up for each
contract sold? Margin b. If the futures price falls by 1% to 2,079, what will happen to the margin
account of an investor who holds one contract? (Input the amount as a positive value.) Margin
account by c-1. What will be the investor's percentage return based on the amount put up as
margin? (Negative value should be indicated by a minus sign. Round your answer to 2 decimal
places.) Percentage return ed ok at rices c-2. What would be the current cash balance in the
margin account? Cash balance

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