Exam 22: Futures Markets

On January 1, the listed spot and futures prices of a Treasury bond were 93.8 and 93.13. You purchased $100,000 par value Treasury bonds and sold one Treasury bond futures contract. One month later, the listed spot price and futures prices were 94 and 94.09, respectively. If you were to liquidate your position, your profits would be a

Which of the following statements is false? I) The maintenance-margin is the amount of money you post with your broker when you buy or sell a futures contract. II) If the value of the margin account falls below the maintenance-margin requirement, the holder of the contract will receive a margin call. III) A margin deposit can only be met with cash. IV) All futures contracts require the same margin deposit.

On April 1, you sold one S&P 500 Index futures contract at a futures price of 1,550. If, on June 15, the futures price was 1,612, what would be your profit (loss) if you closed your position (without considering transactions costs)?

The open interest on silver futures at a particular time is the

Foreign currency futures contracts are actively traded on the

With regard to futures contracts, what does the word "margin" mean?