Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the margin requirement on the s&p 500 futures

The margin requirement on the S&P 500 futures contract is 10%, and the stock index...

60.1K

Verified Solution

Question

Accounting

The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently 1,800. Each contract has a multiplier of $50.

a. How much margin must be put up for each contract sold? Margin _______ b. If the futures price falls by 2% to 1,764, what will happen to the margin account of an investor who holds one contract? (Input the amount as a positive value.) Margin account _____ (increases/decreases) by _______ c-1. 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.) Percentage return _______%

c-2. What would the current cash balance in the margin account? Cash balance ______

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students