Your Broker Requires an Initial Margin of $1,500 and a Maintenance

question 77

Multiple Choice

Your broker requires an initial margin of $1,500 and a maintenance margin of $1,000 on Treasury note futures. Treasury note futures contracts are based on a $100,000 par value and quoted in points and one-half of 1/32 of a point. You own one Treasury futures contract that had a closing settlement quote of 113′245 yesterday. Today, the settlement quote is 112′265. Your margin balance at yesterday's close was $1,150. All margin calls restore margin levels to their initial level. Will you receive a margin call based on today's settlement quote and, if so, for what amount?

• A)no margin call
• B)call for $1,037.50
• C)call for $937.50
• D)call for $1,100
• E)call for $1,287.50

---

Definitions:

Preterm

A term referring to babies born before 37 weeks of gestation, which are considered earlier than the full term of pregnancy.

Full Term

Refers to a pregnancy that has reached its natural completion, typically around 37 to 42 weeks, resulting in the birth of a newborn.

Cephalocaudal Pattern

A developmental principle where growth and skill development proceed from the head downward through the body.

Proximodistal Pattern

A pattern of growth and development in humans where development proceeds from the center of the body outward to the extremities.