Multiple Choice
A trader buys a 90-day Eurodollar futures contract at 95.25.The next day, interest rates fall 4.5%.Which of the following is true? Assume that the initial and maintenance margins are $5,000.
A) The trader would have to deposit an additional $62,500 into her account.
B) The trader would have to deposit an additional $2,500 into her account.
C) The trader would have to deposit an additional $625 into her account.
D) The trader could withdraw $2,500 from her margin account.
E) The trader could withdraw $625 from her margin account.
Correct Answer:

Verified
Correct Answer:
Verified
Q23: When you buy a futures contract, your
Q26: Explain the concepts of cross hedging and
Q31: Forward contracts rarely require a performance guarantee
Q36: When futures prices falls, buyers gain at
Q44: The daily change in the value due
Q52: Which of the following wishes to reduce
Q55: When you sell a futures contract, your
Q55: Which of the following is correct about
Q57: How many 90-day Eurodollar futures contracts should
Q59: A zero cost collar:<br>A) is risk-free.<br>B) is