Assume that on a recent day, the September 2019 S&P Indexfutures contract (i.e., the S&P contract which expires inSeptember) closed at 2890, up 7 points on the day. The value of thecontract is set at 250 × the index.
When you bought the contract, you had to put up initial marginof $35,000. The maintenance margin is $31,000. At what contractprice will you get a margin call?
Explain.
