How much would the margin call be

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Assume that you enter into the short side of an E-mini S&P 500 futures contract at a price of $2750.25 that expires in one month from now.   The E-mini S&P 500 contract is $50 *S&P500 (or a 50 times multiplier of the S&P 500, so you are effective agreeing to sell 50 units of the S&P 500 portfolio at that price) . Assume that the minimum price tick (or change in the quoted price) is $0.25 per index unit.   The initial margin requirement is $5280, and the maintenance margin is $4800. At what closing price would you get a margin call (based on the minimum change to lead to a margin call)? How much would the margin call be? Assume that you start with $5280 in your brokerage account.

Reference no: EM131956500

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