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6. Determine the current value of the margin account for the following scenario: You have two futures contracts purchased one month ago. The underlying instrument

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6. Determine the current value of the margin account for the following scenario: You have two futures contracts purchased one month ago. The underlying instrument was trading at $1000 at the time you entered the futures contract. You are long two $1005 contracts which expire in 3 months. The initial margin for each contract is $200. The maintenance margin is $100. In the month since you entered the contract, the price of the underlying security has risen to $1010 as of today. 1. What is the value of the margin account today? 2. Another month passes and the market has crashed. The underlying security is now trading at $850. What is the value of the margin account after the crash (please remember the maintenance margin amount)? Please show the margin account amounts at time 0, 1 and 2 and the cash flows

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