Find ending margin account balance

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Reference no: EM131918729

On 11/12/XX, you decided to open a margin account to purchase S&P 500 stock index futures. The stock index futures traded at 1187.70/share when you opened your position. Each contract has 250 shares of the S&P 500 Index attached. Your broker requires an initial margin of 10% of the total initial value of your futures position. The maintenance margin is $20,000 per contract. S&P 500 stock index futures trades at 1178 on 11/13/XX.

How much must you deposit in a margin account if you wish to purchase two contracts on 11/12/XX?

Find your ending margin account balance on 11/13/XX. Assume deficits are eliminated to keep the position open?

Reference no: EM131918729

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