Assignment:
In late June, Simon purchased two September silver futures contracts. Each contract size is 5,000 ounces of silver and the futures price on the date of purchase was USD 18.62 per ounce. The broker requires an initial margin of USD 6,000 and a maintenance margin of USD 4,500. You are given the following price history for the September silver futures:
|
Day
|
Futures Price (USD)
|
Daily Gain (Loss)
|
|
June 29
|
18.62
|
0
|
|
June 30
|
18.69
|
700
|
|
July 1
|
18.03
|
-6,600
|
|
July 2
|
17.72
|
-3,100
|
|
July 6
|
18.00
|
2,800
|
|
July 7
|
17.70
|
-3,000
|
|
July 8
|
17.60
|
-1,000
|
On which days did Simon receive a margin call?
a. July 1 only
b. July 1 and July 2 only
c. July 1, July 2 and July 7 only
d. July 1, July 2 and July 8 only