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da Euro currency (EUR/USD) futures contract from the CME Group. Each EUR/USD futures contract contain futures contract contains the underlying assets of 125,000 Euro currency.
da Euro currency (EUR/USD) futures contract from the CME Group. Each EUR/USD futures contract contain futures contract contains the underlying assets of 125,000 Euro currency. The contract expires in June 2020. i ne settlement price you received for the futures contract is $1.3840/. ME Group requires $3,550 USD as the initial margin deposit and $2,500 as the maintenance margin deposit. (1) Suppose the settlement prices of the EUR/USD futures contract turn out to be: $1.4040, $1.3740, and $1.3730 in the next three days. You plan to close your position in the futures contract based on Day 3's settlement price. How much is your margin account balance in each day (Note: you have to always maintain the minimum margin account balance when you are trading the futures contract)? Show your answer and calculation in the table below. (3 points) Day Margin Account Balance EUR/USD Futures Contract Settlement Price $1.3840/ Day 0 $3,350 (1.3840 -1.4040) X 125000 = -25oo & 3,350-2500 5850 Loss Day 1 $1.4040/ Day 2 $1.3740/ Day 3 $1.3730/ (2) If you close your position in the euro futures contract on Day 3 (based on Day 3's settlement price), how much is your total gain or loss after the three-day's trading of the futures contract? (1 point)
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