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Assume today's settlement price on ICE London futures contract is 0.8474/. You have a long position in one contract. Your margin account currently has a

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Assume today's settlement price on ICE London futures contract is 0.8474/. You have a long position in one contract. Your margin account currently has a balance of 7,500. The maintenance bond is 5,000. The next three days' settlement prices are: Day 1 Day 2 Day 3 0.8325/ 0.8297/ 0.8416/ Required: (1) Calculate the changes in the margin account from daily marking-to- market and the balance of the margin account after the third day. The contract size of one euro contract is 125,000. (20%) (ii) Repeat question (i) but on the basis that you have a short position in the contract. (20%)

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