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Yesterday, you entered into a futures contract to buy €62,500 at $1.50 per €. Your initial...

Yesterday, you entered into a futures contract to buy €62,500 at $1.50 per €. Your initial performance bond is $1,500 and your maintenance level is $500. At what settle price will you get a demand for additional funds to be posted?

Solutions

Expert Solution

To get the margin call, you have to lose $1000.

(62500*1.5)-1000= 92750

Settlement price at demand for additional fund

= (92750/62500)= $1.484

jeff jeffy answered 2 years ago
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