Futures: Margin Call
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Yesterday, you entered ito a furtures contract to SELL Euro62,500 at $1.20 per euro. Initial performance bond is $1,500 and maintenance level is $500. What's the settle price will you get a demand for additional funds to be posted?
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Solution Summary
The settlement price at which there will be a margin call is calculated.
Solution Preview
Initial margin= $1,500
Maintenance margin= $500
Therefore, difference= $1,000
You have to incur a loss of $1,000 before additional demand for funds is ...
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