On Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer the following questions.

On which of the given days do you get a margin call?

Question

On Monday morning you sell one June T-bond futures contract at $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer the following questions.

On which of the given days do you get a margin call?

Quizplus · Accepted Answer

Your margin account falls below the maintenance margin of $2,000 after the market close on Wednesday. The margin call will be $2,000 − [2,700 − (100,000 − 97,843.72)] = $1,456.28.

On Monday Morning You Sell One June T-Bond Futures Contract