Consider a long position in the CME Euro/U.S. Dollar futures contract. It is written on 125,000 and quoted in $ per . The strike price is $1.20 the maturity is 3 months. At initiation of the contract, the long posts an initial performance bond (initial margin)of $7,000. The maintenance performance bond (maintenance margin) is $4,500. The next three days settlement prices are $1.21, $1.23, and $1.14. How much do you have to deposit on the third day if you want to maintain the futures position? (4 points)

On the third day I am getting an account balance of $4,500. Do you need to do a margin call if your account balance is equal to the maintenance performance bond? Thank you