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On Monday morning you sell one June T-bond futures contract at 97:27, that is, for $97,843.75....

On Monday morning you sell one June T-bond futures contract at 97:27, that is, for $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700, and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer the following questions.

Day Settle

Monday $97,406.25

Tuesday $98,000.00

Wednesday $100,000.00

The cumulative rate of return on your investment after Wednesday is a ________.

2.6% loss

53.9% loss

79.9% loss

33% gain

Solutions

Expert Solution

PRESENTED IN EASY FORMAT. WE CAN ALSO PRESENT IN FORM OF PREPARING MARGIN ACCOUNT. IF YOU ARE TOLD TO MAKE MARGIN ACCOUNT AND THEN PRESENT ANSWER, LET ME KNOW.

jeff jeffy answered 10 months ago
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