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A Trader Buys a 90-Day Eurodollar Futures Contract at 95

Question 60

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.

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