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A trader purchased a Canadian futures contract at time t and the exchange rate has evolved as shown below. Initial margin is $3,000, and maintenance

A trader purchased a Canadian futures contract at time t and the exchange rate has evolved as shown below. Initial margin is $3,000, and maintenance margin is $1,500. The contract size is CAD 100,000. If margin call is triggered, the trader will invest more fund to bring the marginal account balance to the initial margin. What would the traders margin account balance have been at the end of time t+4?

Day Futures Price USD/CAD
t 0.9705
t + 1 0.9610
t + 2 0.9540
t + 3 0.9650
t + 4 0.9743

A. $5,030 B. $3,380 C. $2,880 D. $1,500 E. None of the above

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