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Homework due Jan 20, 2021 23:00 CST Question 4 0.0/3.0 points (graded) Suppose that on Day O you take a long position in a futures

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Homework due Jan 20, 2021 23:00 CST Question 4 0.0/3.0 points (graded) Suppose that on Day O you take a long position in a futures contract on copper maturing on Day 3. Each contract is on 2,000 kilograms of copper, with the closing futures price on Day O equal to H0 = $96 per kilogram. Suppose the closing futures prices on Day 1, 2, and 3 are H1 = $96 and H2 = $104, H3 = $90, respectively. The futures contract is marked to market daily, at the end of the trading day, with resulting gains and losses settled using a margin account. Compute the cash flow into/from the margin account resulting from marking to market a long position in 1 futures contract at the end of Day 2. State the cash inflow as a positive number, and cash outflow as a negative number. Please round your answers to at least two digits

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