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Anyone who saw the film Trading Places knows that Eddie Murphy as a trader in orange juice futures had no intention of purchasing or delivering

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Anyone who saw the film Trading Places knows that Eddie Murphy as a trader in orange juice futures had no intention of purchasing or delivering orange juice. Traders simply bet on the futures price of juice. The total profit or loss realized by the long trader who buys a contract at time "O" and close, or reverse, it at time "t" is just the change in the future price over the period, (Ft - Fo). Symmetrically the short trader earn (Fo.- Ft). The process by which profits or losses accrue to traders is called marking to market. Assume the current future price for silver for delivery 5 days from today is $5.10 per ounce. Suppose that over the next 5 days, the future price evolves as follows: C. day futures price 0 (today) $5.10 1 $5.20 2 $5.25 3 $5.18 4 $5.18 5(delivery) $5.21 Calculate the daily mark-to-market settlement for one contract held by the long position (1 contract = 5,000 ounces). d. What must be the net inflow or outlay from marking to market for the clearing house

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