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What is the balance of margin account

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You sell one December futures contract when the futures price is $1010 per unit. Each contract is on 100 units and the initial margin per contract that you provide is $2000. The maintenance margin per contract that you provide is $2000. The maintenance margin per contract is $1500. During the next dayy the futures settlement price rises to $1012 per unit.

(a) What is the balance of your margin account at the end of the day?

(b) Suppose your margin account has $2000. What is the futures price per unit above which there will be a margin call?

(c) Suppose your margin account has $2000. What is the futures price per unit that will allow you to withdraw $2000 from the margin account?

Reference no: EM131074053

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