Question
Given; i) The required deposit in the performance bond account is $5,000; ii) The settlement price for the day on the Tokyo Mercantile Exchange for
Given; i) The required deposit in the performance bond account is $5,000; ii) The settlement price for the day on the Tokyo Mercantile Exchange for futures contract is $20.50/; iii) In the next three days settlement prices will be $20.32, $20.42 and $20.30; iv) Under the circumstances, you will have a long position in the futures contract. v) The contractual size of one Yen contract is 200,000. Required: From the information above i) Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day;
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