Consider a 125,000 euro futures contract in which the current future price is $1.08 per euro. The initial margin requirement is $2,310 per contract, and
Consider a 125,000 euro futures contract in which the current future price is $1.08 per euro. The initial margin requirement is $2,310 per contract, and the maintenance margin requirement is $2,100 per contract. You go short 10 contracts and meet all margin calls but do not withdraw any excess margin. Assume that on the first day, the contract is established at the settlement price, so there is no mark-to-market gain or loss on that day.
Complete the table below. In your answer you can write A=..., B=... (from A to I) or alternatively, copy and paste the completed table in the box.
Day | Required Deposit | Beg. Balance | Settle Price | Daily Change | Gain/ Loss | Ending Balance |
0 (Purchase) | $23,100 |
| $1.080 | - | - | $23,100 |
1 | 0 | $23,100 | $1.079 | A | B | C |
2 | D | E | $1.086 | F | G | H |
3 | I |
| $1.080 |
|
|
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