Loss incurred in Day 3 of trading = 5,000 bushels 3 $0.01

= $150

Cumulative Profits remaining after loss incurred

= Profits from day 2 - Loss incurred in Day 3

= $450 - $150

= $300

Amount in margin account balance at the end of Day 3 trading

= Value remaining after loss incurred + Initial Margin

= $300 + $450

= $750

The margin account balance at the end of Day 3 would be $750.

Question: Explain the components making up this amount, $750.