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26 June, 18:42

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. On which of the given days do you get a margin call? Select one: A. Wednesday B. Tuesday C. none of these options D. Monday

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  1. 26 June, 18:48
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    A. Wednesday

    Explanation:

    On which of the given days do you get a margin call? On Wednesday

    Margin account will falls below the maintenance margin of $2,000 after the market close on Wednesday.

    The margin call will be $2,000 - [2,700 - (100,000 - 97,843.72) ] = $1,456.28.
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