Solved

Yesterday, You Entered into a Futures Contract to Buy €62,500

Question 3

Multiple Choice

Yesterday, you entered into a futures contract to buy €62,500 at $1.50/€. Your initial margin was $3,750 (= 0.04 × €62,500 × $1.50/€ = 4 percent of the contract value in dollars) . Your maintenance margin is $2,000 (meaning that your broker leaves you alone until your account balance falls to $2,000) . At what settle price (use 4 decimal places) do you get a margin call?


A) $1.4720/€
B) $1.5280/€
C) $1.500/€
D) None of the above

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents