13. Marking to Market (LO2, CFA2) You are short 15 gasoline futures contracts, established at an initial
Question:
13. Marking to Market (LO2, CFA2) You are short 15 gasoline futures contracts, established at an initial settle price of $2.085 per gallon, where each contract represents 42,000 gallons. Your initial margin to establish the position is $7,425 per contract and the maintenance margin is
$6,500 per contract. Over the subsequent four trading days, gasoline settles at $2.071, $2.099,
$2.118, and $2.146, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement.
Step by Step Answer:
Fundamentals Of Investments Valuation And Management
ISBN: 9781260013979
9th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin