2. You have purchased 1 Eurodollar contract at a price of Q0 5 94.13, with an initial margin of 5%. You keep the contract for 5 days and then sell it by taking the opposite position. In the meantime, you observe the following settlement prices:

fQ1 5 94:23; Q2 5 94:03; Q3 5 93:93; Q4 5 93:43; Q5 5 93:53g (3.97)

a. Calculate the string of mark-to-market losses or gains.

b. Suppose the spot interest rate during this 5-day period was unchanged at 6.9%. What is the total interest gained or paid on the clearing firm account?

c. What are the total gains and losses at settlement?