You have a long futures position on an asset with a settlement price of $30.00 and a contract expiration date of 6-months from now.If the settlement price of the contact is $30.08 tomorrow,then what cash flow will take place if you assume that the initial margin was zero?

Question

Quizplus · Accepted Answer

Since the settlement price increased by $.08, you will receive $.08 per contract. Since the initial margin was zero, there will be no adjustments made and the gain will be paid out immediately.

You Have a Long Futures Position on an Asset with a Settlement