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Question
Assume that an investor buys one June NYSE Composite Index Futures Contract on May 1 at a price of 72. The position is closed out after four days. The prices on the three days after purchase were 72.5, 72.1 and 72.2. The initial margin is $3500. (a) Calculate the current equity on each of the next three days.(b) Calculate the excess equity for those three days.
(c) Calculate the final gain or loss on this position.
Answer
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