The margin requirement on the S&P 500 futures contract is 10%, and the stock index...
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Accounting
The margin requirement on the S&P 500 futures contract is 10%, and the stock index is currently 1,100. Each contract has a multiplier of $50.
a. How much margin must be put up for each contract sold?
Margin ______?
b. If the futures price falls by 1% to 1,089, what will happen to the margin account of an investor who holds one contract? (Input the amount as a positive value.)
Margin account _________ by _______________
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