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Assume todays settlement price on a CME CAD futures contract is $0.8219/CAD. You have a short position on two contracts. Your performance bond account currently
Assume todays settlement price on a CME CAD futures contract is $0.8219/CAD. You have a short position on two contracts. Your performance bond account currently has a balance of $2,600. The next four days settlement prices are $0.8225, $0.8110, $0.8115 and $0.8105.
1. Calculate the change in your performance bond from daily marking-to-market. Show your work.
Day 1:
Day 2:
Day 3:
2. Calculate the balance of your performance bond account after the fourth day. Show your work.
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