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Consider a futures contract to buy EUR with maturity in 30 days. The price is USD0.843/EUR for a pre-specified amount of EUR125,000. The initial margin

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Consider a futures contract to buy EUR with maturity in 30 days. The price is USD0.843/EUR for a pre-specified amount of EUR125,000. The initial margin requirement is USD5,400, while the maintenance requirement is USD4,000. Suppose after the first day of trading, the futures price rises to USD0.89/EUR. At the end of trading on day 2, the futures price has decreased to USD0.810/EUR. How much must the investor add to the margin account at the end of trading on day 2? a. USD2,725 b. USD4,125 C. USD1,400 O d. USD1,275 e. None of the options in this question are correct

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