• Prepare the margin account showing the mark-to-market cash flows, the daily closing balances and net profit (loss) in the accounts of (a) An investor who has gone long at 1450 (b) An investor who...

Extracted text: • Prepare the margin account showing the mark-to-market cash flows, the daily closing balances and net profit (loss) in the accounts of (a) An investor who has gone long at 1450 (b) An investor who has gone short at 1450


Extracted text: The settlement price of an index future contract on a particular day was 1450.The multiple associated with the contract is 100. The initial margin is Rs 5000 while maintenance margin is set at Rs 4000. • The settlement prices on the next five days are as follows: Day Settlement Price (Rs) 1 1460 2 1480 1455 4 1435 1440 • Prepare the margin account showing the mark-to-market cash flows, the daily closing balances and net profit (loss) in the accounts of LO