8. Suppose you have a short position in one Euro futures contract in the Chicago Mercantile Ex- change today, the contract size is e50,000, the initial performance bond (initial margin) is 2% and the maintenance performance bond (maintenance margin or minimum margin) is $1000. a) (5 points) What is the initial balance in your account (today, in dollars) if the settlement price today is $1.12/e? Solution: b) (12 points) The settlement prices for the next three days are $1.12/e, $1.13/e, and $1.11/e. Calcu- late the changes in your performance bond account from daily resettlement. Will you receive a margin call? If so, specify in which day and how much money will you need to deposit in your account to keep your position from being closed. Solution: c) (3 points) What is the balance of the performance bond account after the third day. Solution