Exam 17: Futures Markets and Risk Management

On Monday morning you sell one June T-bond futures contract at 97:27 or for $97,843.75. The contract's face value is $100,000. The initial margin requirement is $2,700 and the maintenance margin requirement is $2,000 per contract. Use the following price data to answer questions 67 through 70. -On which of the given days do you get a margin call?

Futures markets are regulated by the __________.

The price of a corn futures contract is $2.65 per bushel when the contract is issued and the commodity spot price is $2.55.When the contract expires,the two prices are identical.What principle is represented by this price behavior?

If an asset price declines,the investor with a _______ is exposed to the largest potential loss.

If you expect a stock market downturn,one potential defensive strategy would be to __________.

The use of leverage is practiced in the futures markets due to the existence of _________.

Interest rate swaps involve the exchange of ________________.