Kizspy Question: 36
(Choose 1 answer)
Yesterday, you entered into a futures contract to buy €62,500 at $1.50/€. Your initial margin was $3,750 (= 0.04
* €62,500 x $1.50/€ 4 percent of the contract value in dollars). Your maintenance margin is $2,000 (meaning
that your broker leaves you alone until your account balance falls to $2,000). At what settle price (use 4
decimal places) do you get a margin call?
A. $1.4720/€
B. $1.5280/€
C. $1.500/€
D. None of the above
