What settle price do you get a margin call

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Reference no: EM13828754

Yesterday, you entered into a futures contract to buy €62,500 at $1.50/€. Your initial margin was $3,750 (= 0.04 x €62,500 x $1.50/€ = 4 percent of the contract value in dollars). Your maintenance margin is $2,000 (meaning that your broker leaves you alone until your account balance falls to $2,000).

At what settle price (use 4 decimal places) do you get a margin call?

Select one:

a. $1.4720/€

b. $1.5280/€

c. $1.500/€

d. None of the above

Reference no: EM13828754

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