Multiple Choice
A trader buys a 90-day Eurodollar futures contract at 95.25. The next day, interest rates rise to 5.25%. 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 $5,000 into her account.
B) The trader would have to deposit an additional $1,250 into her account.
C) The trader would have to deposit an additional $625 into her account.
D) The trader could withdraw $1,250 from her margin account.
E) The trader could withdraw $625 from her margin account.
Correct Answer:
Verified
Correct Answer:
Verified
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