Suppose an investor has a 5 million long position in t-bond


1. Suppose an investor has a $5 million long position in T-bond futures. The investor’s broker requires a maintenance margin of 2.52 percent. What is the amount currently in the investor’s account?

2. Suppose an investor has a $10 million long position in T-bond futures. The investor’s broker a requires a maintenance margin of 6.4 percent. Suppose also that the value of the futures contract drops by $539,894. How much will the investor be required to pay his broker to maintain his margin?

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Financial Management: Suppose an investor has a 5 million long position in t-bond
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