How much does the member have to add to its margin account


At the end of one day a clearinghouse member is short 100 contracts, and the settlement price is $50,000 per contract. The original margin is $2,000 per contract. On the following day the member becomes responsible for clearing an additional 20 short contracts, entered into at a price of $51,000 per contract. The settlement price at the end of this day is $50,200. How much does the member have to add to its margin account with the exchange clearinghouse?

 

HINT: THE SHORT CONTRACTS...

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Financial Management: How much does the member have to add to its margin account
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