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After finishing college for the year, you decide to start studying global currency markets and come to the belief that the Japanese Yen ( JPY
After finishing college for the year, you decide to start studying global currency markets and come to the belief that the Japanese Yen JPY is currently undervalued relative to the US dollar ie you beliefe that the Yen is expected to appreciate compared to the US dollar To trade this view, you decide to purchase a single futures contract on the JPYUSD currency pair.
The futures contract is currently quoted at $ per ie it costs you $ to buy Yen and each contract covers Yen. You are required to post an initial margin of $ If the futures contract closes the day at $ per then what will the balance of your margin account be after the position has been markedtomarket?
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