You sell one December futures contracts when the futures price is $1,010 per unit. Each contract is on 100 units and the initial margin per contract that you provide is $2,000 . The maintenance margin per contract is $1,500
During the next day the futures price rises to $1,012 per unit. What is the balance of your margin account at the end of the day?
A. $1,800
B. $3,300
C. $2,200
D. $3,700
A
The price has increased by $2 . Because you have a short position you lose 2×100 or $200 . The balance in the margin account therefore goes down from $2,000 to $1,800 .
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