Can someone explain no.96?
Thanks a million!
Day 0: initial margin acct. bal.: 10*5=50
Day 1: price increases to 103, so acct. balance has to decline 3*10=30 (price increases gets loss for short position), ending balance 20<30(maintenance margin requirements)
Day 2: margin acct. bal. increases to 50
price decreases to 96, so balance has to increase (103-96)*10=70, ending balance 120>30
Day 3: margin acct. balance 120
price increases to 98, so balance has to decrease 2*10=20, ending balance 100.
because it is a future contract. you need bring back to the initial margin which is 50 in this case.
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