Your Broker Requires an Initial Margin of $1,600 and a Maintenance

question 57

Multiple Choice

Your broker requires an initial margin of $1,600 and a maintenance margin of $1,100 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 $1,200. 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 $1,337.50

Recognize the role of life events and shared experiences in forming consumer behavior.

Understand the impact of nostalgia and historical quality perceptions on consumer attitudes.

Identify and analyze themes of conflict within generational cohorts.

Recognize the influence of societal and environmental factors on consumer behavior.

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Definitions:

Market Value

The current market rate at which an asset or service can be traded.

Book Value

The net value of a company's assets minus its liabilities, representing the equity value of a company on its balance sheet.

Reverse Stock Split

A corporate action in which a company reduces the number of its existing shares to increase the share price without changing the total market capitalization.

Market Value

The current trading price for a service or asset in the open market.