Yesterday, you entered into a futures contract to buy €62,500 at $1.50 per €. Your initial margin is $1,500 and your maintenance margin is $500. At what settle price will you get a demand for additional funds to be posted? A. $1.5160 per €. B. $1.208 per €. C. $1.1920 per €. D. $1.4840 per €. E. None of the above

Given that the futures contract entered is to buy Euros 62,500

Price per euro is $1.50

Initial Margin = $1,500

Maintainence Margin = $500

We will get a margin call when we get a loss that makes the margin account go below the maintenance margin

Hence Maximium loss amount is 1000

Now, Let X be the change in price of euros

( 1.5 - X ) * 62,500 = 1000

1.5 - X = 0.016

X = 1.5 - 0.016

X = 1.484$ per Euro

Hence the price should fall to 1.484$ per Euro to get a margin call