Question
Assume todays settlement price on a CME GBP futures contract is $1.4948/. You have a short position in one contract (with the standardized contract size
Assume todays settlement price on a CME GBP futures contract is $1.4948/. You have a short position in one contract (with the standardized contract size of 62,500). Your initial performance bond account currently has a balance of $4,000 and the maintenance level is $2,500. The next three days settlement prices are $1.4908, $1.5088, and $1.5208.
Fill out the following table by calculating the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day.
Day | Settlement price ($/) | Daily Gain/Loss ($) | Account balance ($) |
0 | 1.4948 | -- | $4,000 |
1 | 1.4908 |
|
|
2 | 1.5088 |
|
|
3 | 1.5208 |
|
|
Daily account balance (please fill out ONLY the account balance, not daily profit/loss):
Day 1: $ Day 2:$ Day 3: \$ Total profit/loss: $ (Use negative sign in front of the number for loss) Are you going to have a margin call during the three-day trading period? Answer: (yeso). If your answer is yes, you will have a margin call on Day (insert 1,2, or 3). If you decide to stay in the market, you need to deposit in order to continue playing the game. Day 1: $ Day 2:$ Day 3: \$ Total profit/loss: $ (Use negative sign in front of the number for loss) Are you going to have a margin call during the three-day trading period? Answer: (yeso). If your answer is yes, you will have a margin call on Day (insert 1,2, or 3). If you decide to stay in the market, you need to deposit in order to continue playing the game
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