An investor enters into a long position in 10,000 futures contracts of oil with a $50,000 initial margin and has a maintenance margin that is 75 percent of this amount.The futures price associated with this contract is $100.Assuming the price of the underlying asset decreases to $98,what is the margin call?
A) $50,000
B) $37,500
C) $7,500
D) No margin required
Correct Answer:
Verified
Q21: By definition LIBOR is:
A)the long-term inter-bank option
Q29: Montreal First Bank is selling forward contracts
Q30: Characteristics of futures contracts include
I.traded on an
Q31: David estimated a six-month forward rate of
Q32: If the bank could borrow at a
Q35: Assume the following: underlying asset spot $200,storage
Q37: Which of the following are classified as
Q38: Which of the following refers to the
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents