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1) In the coffee futures contracts (37,500 lbs per contract), the December contract settled at $1.1675 per lb,on Sept. 1. Suppose we bought 1 Dec.
1) In the coffee futures contracts (37,500 lbs per contract), the December contract settled at $1.1675 per lb,on Sept. 1. Suppose we bought 1 Dec. futures on Sept. 1 (day 0). On the 4 succeeding trading days, the Dec. contract settled at the following price: S1.1043, $1.1523, $1.2004, and $1.1650. Compute: (a) The overnight gains and losses in these 4 days; (b) If the initial margin was $5,000 and the maintenance margin was $4,000 for each contract, compute the dollar value of the margin account after 4 days, assuming you earn no interest in the account
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