You entered into a futures contract to buy €62,500 at $1.20/€ yesterday. Your initial margin was $4,200. Your maintenance margin is $2,500 (meaning that your broker leaves you alone until your account balance falls to $2,500). At what settle price will you get a margin call? O $1.2750/€ O $1.0272/€ O $1.1728/€ O $1.5800/€

You entered into a futures contract to buy €62,500 at $1.20/€ yesterday. Your initial margin was $4,200. Your maintenance margin is $2,500 (meaning that your broker leaves you alone until your account balance falls to $2,500). At what settle price will you get a margin call? O $1.2750/€ O $1.0272/€ O $1.1728/€ O $1.5800/€

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

You entered into a futures contract to buy €62,500 at $1.20/€ yesterday. Your initial margin was
$4,200. Your maintenance margin is $2,500 (meaning that your broker leaves you alone until your
account balance falls to $2,500). At what settle price will you get a margin call?
$1.2750/€
$1.0272/€
$1.1728/€
O $1.5800/€

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