Question
Consider a futures contract in which the current futures price is $82. The initial margin is $5 and the maintenance margin is $2. You go
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Consider a futures contract in which the current futures price is $82. The initial margin is $5 and the maintenance margin is $2. You go long 20 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
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Complete the table below and provide an explanation of any funds deposited
Day | Beginning Balance | Funds Deposited | Settlement Price | Futures Price Change | Gain or Loss | Ending Balance |
0 | 82 | |||||
1 | 84 | |||||
2 | 78 | |||||
3 | 73 | |||||
4 | 79 | |||||
5 | 82 | |||||
6 | 84 |
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Compute the total gain or loss
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