1. You have decided to go long 15 coffee contacts trades in $ per pound; minimum movement = $.0005/pound; Contract size = 37,500 pounds). The initial margin for the contact is $5,313 and the maintenance margin is $4,250. The price at the time you entered the position was $1.1890. The equity in you account at that time was $81,000. Below what price of the contract would you get a margin call? If the contract settled at $1.1600 would you get a margin call and if so how much would you have to add to the account.
2. You have decided to go short the S&P 500 Contract (trades 250 times the index; tick value is .25 points). The initial margin for the contract is $24,000 and the maintenance margin is $19,200. In your account you have equity at the time you entered the position of $109,440. If you want to short the maximum number of contract that your equity would support, how many contracts could you short? Assuming that you shorted that number of contract at 1888.25, at what settlement price level of the S&P futures would you get your first margin call?
3. The current price of the Ultra Bond contract (trade in percent and 32nd of 1 %, Face value is $100,000) is 161'270. Your account currently has $50,000 in equity. The initial margin for the contract is $5400 and the maintenance marginis $4350. You have decided to enter a long position that maximizes the use of your equity. Assume you have done this, at what settlement price level would you first get a margin call? If this happened how much would the margin call be for?
4. You have decided to trade December Wheat contract (Chicago SRW Wheat futures). You determined that you want to go short the 8 contracts, which trade on the CBOT (part of the CME group). Assume you entered the position at a price of 472 1/2. Your equity in the account at the time you entered the position was $19,000. The initial level of margin is 25% more than the maintenance level (CME). What is the level of the price of wheat above which you would get a margin call?
5. You have decided to go long 5 contracts of the Dow Contracts (Trades $5 times the index). The initial margin on the contract is $4,875 and the maintenance margin is $3,900. The price that you entered the position was 15,635. The Equity in the account at the time was $28,000. At what level would you first get a margin call? If the settlement price is 14,200 would you get a margin call and if so how much would the call be for?