Calculate the funds deposited and ending balance

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Reference no: EM131876143

Question Suppose that you buy a stock index futures contract at the opening price of 452.25 on July 1. The multiplier on the contract is 500, so the price is $500(452.25)=$226,125. You hold the position open until selling it on July 16 at the opening price of $435.50. The initial margin requirement is $9000 and the maintenance margin is $6000. Assume that you deposit the initial margin and do not withdraw the excess on any given day.

Complete the table below and explain any funds deposited

Day

Beginning balance

Funds deposited

Settlement price (index point)

Settlement price (dollars)

Gain/loss

Ending balance

1/7

 

 

453.95

 

 

 

2/7

 

 

454.50

 

 

 

3/7

 

 

452.00

 

 

 

7/7

 

 

443.55

 

 

 

8/7

 

 

441.65

 

 

 

9/7

 

 

442.85

 

 

 

10/7

 

 

444.15

 

 

 

11/7

 

 

442.25

 

 

 

14/7

 

 

438.30

 

 

 

15/7

 

 

435.05

 

 

 

16/7

 

 

435.50

 

 

 

Reference no: EM131876143

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