Example 22.2 Marking to Market Assume the current futures price for silver for delivery 5 days from today is $17.10 per ounce. Suppose that over the next 5 days, the futures price evolves as follows: Day 0 (today) Futures Price $17.10 7.20 7.25 17.18 17.18 17.21 2 4 5 (delivery) The spot price of silver on the delivery date is $17.21: The convergence property implies that the price of silver in the spot market must equal the futures price on the delivery day. 1) 2) 3) 4) 5) What is the spot price? What is the future price? Calculate daily proceeds/market-to-market. What is the total amount of payoff for this future? Show the Margin account balance if the margin requirement is 10%