A trader has gone long on 5 Brent crude futures for December settlement at $26.32 per barrel. The minimum contract size for Brent futures contract is 100,000 barrel. The initial margin is $50,000 and the maintenance margin is $30,000. The futures closes at the following prices on the next ten trading days

Day 1 $26.19, Day 2 $26.30, Day 3 $26.45, Day 4 $26.48, Day 5 $26.34, Day 6 $26.21, Day 7 25.98, Day 8 $25.87, Day 9 $25.90, Day 10 $25.95.

The trader will take out the profit out of the margin account whenever he gets the opportunity to do so.

You are required to : (10 MARKS)

a. Prepare the margin account showing all the cash flows.

b. Find the profit/loss for the trader after 10 trading days