A speculator, Mary, enters the futures market in three-month bankers’ acceptance futures (BAX). The market quotes 80.90 as the price for settlement…

A speculator, Mary, enters the futures market in three-month bankers’ acceptance futures (BAX).

The market quotes 80.90 as the price for settlement in three months’ time.

Mary enters the market by purchasing 50 contracts and must set up her margin account with $850 per contract. 

The next day, the BAX closes at 81.05.

What adjustment must be made to Mary’s margin account?

Question 12 options:

a)    The margin account will be credited with $750.

b)    The margin account will be credited with $18,750.

c)    The margin account will be credited with $42,500.

d)    The margin account will be credited with $61,250.