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You sell two December futures contracts when the futures price is $1200 per unit

You sell two December futures contracts when the futures price is $1,200 per unit. Each contract is on 100 units and the inital margin per contract that you provide is $3,500. The maintenance margin per contract is $1,500. During the next day, the futures price rises to $1,222 per unit.

  • What is the balance of your margin account (before the margin call, if there is any) at the end of the day?
  • Does the account balance require a margin call?
  • If so, how much additional money do you have to provide by the end of next day?

Jan 31 2020 View more View Less

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