4.3 Futures: mark to market Suppose the stock price today is So = 100.0. We have a futures contract which will expire 0 and the expiration date is in 5 days. The futures price today is Fo = 105.5. Today is to t5 5 (measured in days, not years) . Every day for ti = i, i = 1, 2, 3, 4, 5, the stock price is S1,S2:Sq,S4,S5. The futures price (the futures price converges to every day is F, F, F, F4, F's. On the expiration day, F5 the stock price) . Every day the futures contract is marked to market. This means that if the futures price on day i is F, (for i 1,2, 3,4,5), the following happens. 1. If F Fi-1, the investor receives a cash amount F F-1 in the mark to market account 2. If F