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Question
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.
Answer
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