1. Consider a speculator, John Travis that expects an increase in the price of gold. On March 7th, the July futures gold contracts trade at $ 642 per ounce. John Travis takes a position in 2 July futures contracts on March 7th. The initial margin is $3,000 per contract and the maintenance margin is $2,000 per contract. The size of a futures contract is 100 gold ounces. Assume the John Travis withdraws any daily excess obtained in the futures trade. Assume the following evolution of futures gold prices for the next 5 days:

Date	Settlement Price	Daily Gains/Losses	Margin Balance	Margin Call/Cash Withdrawals
Mar 7	$642
Mar 8	$644
Mar 9	$645
Mar 10	$641
Mar 11	$630
Mar 12	$635

1. a) Fill the table above and calculate John Traviss cumulative gain/loss at theend of March, 12th.

2. b) Assume that a clearing house member in this futures exchange has 2 clients: John Travis and Emily Ross. At the end of March 12th, both clients hold the same position on futures gold contracts i.e. the clearing house member has 4 July futures gold contracts outstanding. Considering that the clearing margin in this exchange is equal to $3,000 per contract and that at the start of March, 12th the clearing house member had $6,000 in its account, calculate the amount that this member has to transfer to its clearing account at the end of March, 12th.