An Investor Bought a March S&P 500 Index Futures Contract

question 32

Multiple Choice

An investor bought a March S&P 500 Index futures contract in December for $1,490.05. After six months the contract value went down to $1,466.00. The contract has a multiplier of 250. With an initial margin of $20,000, and a $16,000 maintenance margin requirement, would there be a call for more margin?

• A)No, the account would have an excess of $2,012.50
• B)Yes, an additional $3,677.19 would be required
• C)No, the account would have exactly enough cash for margin
• D)Yes, an additional $2,012.50 would be required
• E)No, the account would have an excess of $3,677.19

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Definitions:

2,4-dinitrofluorobenzene

A chemical compound featuring a benzene ring substituted with two nitro groups (NO2) at the 2 and 4 positions and a fluorine atom at the 1 position.

N-terminal

Refers to the start of a protein or polypeptide terminated by an amino acid with a free amine group.

Amino Acid

A building block of proteins, characterized by an amino group (-NH2), a carboxyl group (-COOH), and a specific side chain.

Tripeptide

A molecule composed of three amino acids linked by peptide bonds.