Problemassume mondays settlement price on a cme pound, Ask an Expert

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Problem:

Assume Monday's settlement price on a CME pound futures contract is $1.6080/£. You have a long position in one contract (£62,500). The initial margin is $2,000, the maintenance margin is $1,000. Your margin account on Monday evening (after any adjustment for margin calls) has a balance of $1,700. Over the next three days' settlement prices are Tuesday: $1.6000/£; Wednesday: $1.6073/£; Thursday: $1.5900/£.

Required:

Question: What margin calls, if any, will you get on Tuesday, Wednesday or Thursday evening?

Note: Explain all steps comprehensively.

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Category:- Basic Finance
Reference No.:- M91162972

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