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A hedger entered a long futures contract at an initial futures price of $67 per unit of the underlying. The contract has an initial margin
- A hedger entered a long futures contract at an initial futures price of $67 per unit of the underlying. The contract has an initial margin of $8 per unit of the underlying and maintenance margin of $5 per unit of the underlying. The daily settlement prices for the contract were:
End of Trading Day | Settlement Price |
1 | 65.80 |
2 | 64.75 |
3 | 63.20 |
4 | 68.10 |
5 | 71.00 |
What is the ending balance in the margin account each trading day including any required deposits?
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