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2. Assume today's settlement price on a CME EUR futures contract is $1.2030/EUR. You have a long position in two contracts. Your margin (performance bond)
2. Assume today's settlement price on a CME EUR futures contract is $1.2030/EUR. You have a long position in two contracts. Your margin (performance bond) account currently has a balance of $2,000, which is equal to the initial margin requirement. Assume that you are required to maintain the maintenance margin of $1,500. The contract size of CME EUR futures =125,000. [Hint: Refer to Ch 07 End-of-Chapter Problem \#2] (1) If you lose more than \$ , you will be issued a margin call, which will require you to deposit extra funds into your margin account. (2) If the next day's settlement price is $1.2045, your net profit for the next day is $ and the balance of the performance bond account after the next day becomes $
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