You buy a Standard & Poor's 500 Index futures contract at 1,200.40.The multiplier is 250.The margin is $21,000.The margin maintenance requirement is set at $17,250.
A.If the contract closes out at 1,230.70,what is your dollar return? What is your percent return on margin?
B.If the contract value goes down from $1,240.00 to $1,180.00,will you be called upon to put up more funds?

Question

You buy a Standard & Poor's 500 Index futures contract at 1,200.40.The multiplier is 250.The margin is $21,000.The margin maintenance requirement is set at $17,250.
A.If the contract closes out at 1,230.70,what is your dollar return? What is your percent return on margin? 
B.If the contract value goes down from $1,240.00 to $1,180.00,will you be called upon to put up more funds?

Quizplus · Accepted Answer

The Answer of You buy a Standard & Poor's 500 Index futures contract at 1,200.40.The multiplier is 250.The margin is $21,000.The margin maintenance requirement is set at $17,250.
A.If the contract closes out at 1,230.70,what is your dollar return? What is your percent return on margin? 
B.If the contract value goes down from $1,240.00 to $1,180.00,will you be called upon to put up more funds?

You Buy a Standard & Poor's 500 Index Futures Contract