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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Definitions:

Social Skills

The abilities necessary to communicate, interact, and form relationships with others effectively and appropriately.

Empathetic

Having the ability to understand and share the feelings of another person, showing empathy.

Facial Expressions

The movements of the face that convey emotional states, intentions, or social communications.

Fearful Body Posture

A fearful body posture is a physical stance or expression adopted by an individual or animal indicating fear, anxiety, or preparation for defensive actions.