Let us say you open a margin account with with CME group to buy crude oil futures. Crude oil futures for June end are trading at $70 per barrel today, May 26, and you buy one contract (1000 barrels). The initial margin and the maintenance margin are set at 4% of the contract and $1000. On the days that follow, these are the closing pricing of the same oil futures:

May 27) The price goes up to 72 per barrel

May 28) The price goes down to 68 per barrel

May 29) The price goes down to 66 per barrel

May 30) The price goes up to 69 per barrel

May 31) The price goes up to 71 per barrel You sell the futures contrast that you were holding at the end of the day on May 31.

How much is you account balance in the margin account and how much is your profit?

a. Margin account has $7,800 and the profit is $1000

b. Margin account has $7,800 and the loss is $1000

c. Margin account has $5,800 and the profit is $1000

d. Margin account has $3,800 and the loss is $1000

e. Margin account has $3,800 and the profit is $1000