Homework Question Help #2

Question #39 (10 points). Cooper entered a long position in Natural Gas. The maintenance margin is $7,500 per contract and the initial margin is $8,250 per contract. Each contract is for 10,000 MMBtu's Prices below are US dollars and cents per MMBtu. If Cooper purchased 4 contracts: (a) what is the amount of his initial margin for his entire exposure/position? (1 point) (b) what is the amount of his maintenance margin for his entire exposure/position? (1 point) {c) complete the table below for his margin account balance for his entire exposure/position. (8 points) Be sure to appropriately label values in the respective columns/rows/calls. Day Trade Price Settie Price Daily Gain ($1 Cum. Gain ($) Margin Balance (5) Marginal (5) $4.475 1 2 $4.675 3 $4.570 4 4 $5.043 5 54.723 6 $4.492 7 $4.195 8 $4.220 9 9 $3.978 10 $3941 11 $3.934 12 $4.158 13 $4.240 16 54.570 15 $4431 16 $4.380 17 $4.461 18 $4.590