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A short position in three coffee future contract (30,000 kg for delivery in April 2021) is opened on Dec 16, 2020. On Dec 16, 2020

A short position in three coffee future contract (30,000 kg for delivery in April 2021) is opened on Dec 16, 2020. On Dec 16, 2020 the futures price of coffee is F = N$5.8/kg. The daily settlement of the contract is shown below: Deposit initial margin, : N$ 200,000 (maintenance margin: $100,00). Show all your calculations. Dec 16=N$6.2 Dec 17=N$ 7.20 Dec 18=N$8.3 Dec 19=N$5.6 Dec 20=N$4.5 Dec 21=N$8.77 Dec 22=N$10.2 Dec 23=N$8.36 Dec 24=N$11.5 Total Marks of Q4: 20

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