The margin requirement on the sampp 500 futures contract is, Ask an Expert

Finance

The margin requirement on the S&P 500 futures contract is 8%, and the stock index is currently 1,100. Each contract has a multiplier of $250.

a. How much margin must be put up for each contract sold?

b. If the futures price falls by 2% to 1,078, what will happen to the margin account of an investor who holds one contract? ( inpust the amount as a positivie value.)

C. What will be the investor's percentage return based on the amount put up as margin? (negative value should be indicated by a minus sign. Round your answer to 2 decimal places.)

D. What would be the current cash balance in the margin account?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92754976

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