Suppose that you buy a stock index futures contract at the opening price of 452.25 on July 1. The multiplier on the contract is 500, so the price is $500 (452.25) = $226,125. You hold the position open until selling it on July 16 at the opening price of 435.50. The initial margin requirement is $9,000, and the maintenance margin requirement is $6,000.
Assume that you deposit the initial margin and do not withdraw the excess on any given day.
Construct a table showing the charges and credits to the margin account. The daily prices on the intervening days are as follows:
|
Day
|
Settlement Price
|
|
7/1
|
453.95
|
|
7/2
|
454.50
|
|
7/3
|
452.00
|
|
7/7
|
443.55
|
|
7/8
|
441.65
|
|
7/9
|
442.85
|
|
7/10
|
444.15
|
|
7/11
|
442.25
|
|
7/14
|
438.30
|
|
7/15
|
435.05
|
|
7/16
|
435.50
|