Question
A) Assume todays settlement price on a CME EUR futures contract is $1.293/EUR. You have a short position in one contract. Your performance bond account
A) Assume todays settlement price on a CME EUR futures contract is $1.293/EUR. You have a short position in one contract. Your performance bond account currently has a balance of $1,980 The next three days settlement prices are $1.285, $1.383, and $1.354. Note the contract size of one Euro option is EUR125,000. Calculate the balance of the performance bond account after the third day due to the changes in the performance bond account from daily marking-to-market (keep one decimal, eg 1,500.4).
B) Assume todays settlement price on a CME EUR futures contract is $1.397/EUR. You have a long position in one contract. Your performance bond account currently has a balance of $2,084 The next three days settlement prices are $1.855, $1.355, and $1.921. Note the contract size of one Euro option is EUR125,000. Calculate the balance of the performance bond account after the third day due to the changes in the performance bond account from daily marking-to-market (keep one decimal, eg 1,500.4).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Finance Introduction To Institutions Investments And Management
Authors: Ronald W. Melicher, Edgar A. Norton
11th Edition
0470004460, 978-0470004463
