On Sept. 29, 2020, Mike purchased a futures contract on silver for $6.07/Troy ounce. The size...

On Sept. 29, 2020, Mike purchased a futures contract on silver for $6.07/Troy ounce. The size of the contract is 5,000 Troy ounces of silver. The initial margin requirement is 10%. Over the next three days, the price of silver futures changed as follows:

Calculate the amount of money in Mike’s account at the end of each day.

Day	Price	Margin Account value
2	$6.10
3	$6.09
4	$6.03
5	$5.97
6	$6.03

If the maintenance margin is $2,700, will a margin call result? If so, on which day? How much will Mike be required to deposit into his account?

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jeff jeffy answered 2 years ago

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