You take a short position in 3 futures contracts on WIG20 on the Warsaw Stock Exchange. The current contract price is 2023. The maintenance margin is 6.5% of the contract value and the initial margin is 15% higher than the maintenance margin. What amount do you need to deposit in the margin account when you take the position? Remember the correct multiplier for these contracts on the WSE. a) 3024.38 PLN. b) 453.66 PLN. c) 4536.58 PLN. d) 9073.15 PLN.

You take a short position in 3 futures contracts on WIG20 on the Warsaw Stock Exchange. The current contract price is 2023. The maintenance margin is 6.5% of the contract value and the initial margin is 15% higher than the maintenance margin. What amount do you need to deposit in the margin account when you take the position? Remember the correct multiplier for these contracts on the WSE. a) 3024.38 PLN. b) 453.66 PLN. c) 4536.58 PLN. d) 9073.15 PLN.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Suppose that on September 05, 2021, a company takes a short position in one April 2022 live - cattle futures contract. One contract is for the delivery of 50,000 pounds of cattle. The initial margin for each contract is $\$ 3, 000 $ and the maintenance margin is $\$ 2,000 $. The futures price (per pound) is 180.00 cents when it enters into the contract.(a) If the company receives a margin call at the end of the third day to deposit a variation margin of $1250, what is the settlement price at the end of the day?
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