Exhibit 20.1 Use the Information Below for the Following Problem(S)

Exhibit 20.1
Use the Information Below for the Following Problem(S)
December futures on the S&P 500 stock index trade at 250 times the index value of 1187.70. Your broker requires an initial margin of 10% percent on futures contracts. The current value of the S&P 500 stock index is 1178.
-Refer to Exhibit 20.1.How much must you deposit in a margin account if you wish to purchase one contract?

A) $267,232.5
B) $29,450
C) $29,692.50
D) $30,000
E) $265,050