The settlement price of an index future contract on a particular day was 1450.The multiple associated with the contract is 100. The initial margin is Rs 5000 while maintenance margin is set at Rs 4000. • The settlement prices on the next five days are as follows: Day Settlement Price (Rs) 1 1460 1480 3 1455 4 1435 1440 • Prepare the margin account showing the mark-to-market cash flows, the daily closing balances and net profit (loss) in the accounts of
The settlement price of an index future contract on a particular day was 1450.The multiple associated with the contract is 100. The initial margin is Rs 5000 while maintenance margin is set at Rs 4000. • The settlement prices on the next five days are as follows: Day Settlement Price (Rs) 1 1460 1480 3 1455 4 1435 1440 • Prepare the margin account showing the mark-to-market cash flows, the daily closing balances and net profit (loss) in the accounts of
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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Transcribed Image Text:The settlement price of an index future contract on a particular day was 1450.The
multiple associated with the contract is 100. The initial margin is Rs 5000 while
maintenance margin is set at Rs 4000.
• The settlement prices on the next five days are as follows:
Day
Settlement Price
(Rs)
1
1460
2
1480
1455
4
1435
1440
• Prepare the margin account showing the mark-to-market cash flows, the
daily closing balances and net profit (loss) in the accounts of
LO
Transcribed Image Text:• Prepare the margin account showing the mark-to-market cash flows, the
daily closing balances and net profit (loss) in the accounts of
(a) An investor who has gone long at 1450
(b) An investor who has gone short at 1450
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