You sell one December futures contracts when the futures price is $1,010 per unit.Each contract is on 100 units and the initial margin per contract that you provide is $2,000.The maintenance margin per contract is $1,500.During the next day the futures price rises to $1,012 per unit.What is the balance of your margin account at the end of the day?
A) $1,800
B) $3,300
C) $2,200
D) $3,700

Question

Quizplus · Accepted Answer

The price has increased by $2.Because you have a short position you lose 2×100 or $200.The balance in the margin account therefore goes down from $2,000 to $1,800.

You Sell One December Futures Contracts When the Futures Price