Question
ASSUME TODAY'S SETTLEMENT PRICE ON A CME CDN ($100,000 CANADIAN DOLLAR) FUTURES CONTRACT IS US$0.9309/CAD$. YOU HAVE A SHORT POSITION IN ONE CONTRACT. YOUR MARGIN
ASSUME TODAY'S SETTLEMENT PRICE ON A CME CDN ($100,000 CANADIAN DOLLAR) FUTURES CONTRACT IS US$0.9309/CAD$. YOU HAVE A SHORT POSITION IN ONE CONTRACT. YOUR MARGIN ACCOUNT CURRENTLY HAS A BALANCE OF US$1700. THE NEXT THREE DAYS' SETTLEMENT PRICES ARE:
Day 1 US$0.9386
Day 2 US$0.9393
Day 3 US$0.9403
CALCULATE THE DAILY CHANGES IN THE MARGIN ACCOUNT FROM DAILY MARKING-TO-MARKET AND THE BALANCE OF MARGIN ACCOUNT AFTER THE THIRD DAY.
1. CHANGE IN DAY1?
2. CHANGE IN DAY2?
3. CHANGE IN DAY3?
4. BALANCE ON DAY 3?
Please only do if you are 100% sure of your answer. Please reply asap
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started