On Monday morning you sell one June T-bond futures contract at 97: 27 or for $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 question. 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: 27 or for $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 question.  On which of the given days do you get a margin call?

Quizplus · Accepted Answer

On Wednesday, the settlement price is 97:08, which is lower than the previous day's settlement price of 97:21. This means there was a loss on the position, and the account value has fallen below the maintenance margin requirement of $2,000. Therefore, a margin call would be issued on Wednesday.

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