On Monday morning you sell one June T-bond futures contract at $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 following questions.

After Monday's close the balance on your margin account will be ________.

Question

On Monday morning you sell one June T-bond futures contract at $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 following questions.

After Monday's close the balance on your margin account will be ________.

Quizplus · Accepted Answer

Since the contract was sold, your margin will increase when its price falls, so it is
$2,700 + ($97,843.72 − $97,406.25) = $3,137.50

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