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Long position on 8 S&P 500 futures contracts that pay $250 times the index level....

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Accounting

Long position on 8 S&P 500 futures contracts that pay $250 times the index level.
Initial margin is set at 10% of the contract value on Day 0.
Maintenance margin is 80% of the initial margin
\table[[Day Total multiplier,\table[[Futures price],[(EoD)]],Value change
\table[[Addition to],[margin]],Margin balance,],[0,8250=2000,1100.00,--,],[1,2000,1027.99,,],[2,2000,1037.88,,],[3,2000,1073.23,,],[4,2000,1048.78,,],[5,2000,1090.32,,],[6,2000,1106.94,,],[7,2000,1110.98,,],[8,2000,1024.74,,],[9,2000,1007.30,,],[10,2000,1011.65,,]]
The contract above has 10 x leverage because the nominal size of the contract is ten-times the size of the initial investment. This suggests that a 1% change in the futures price will have a 10% change in the value of the margin account.
a. Does that match the change after the first day's settlement? (Show your work.)
b. Discuss the implications for this amount of leverage for an investor in volatile markets.
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