One contract is = 125,000

Margin = your equity position.

Initial Margin = the amount of money you must put into an account to open the futures position. This is still your money as you have not bought the contract, instead the margin amount is your escrow (or good faith) money to assure you will be able to pay for a loss to you in the contract.

Maintenance Margin = The minimum amount allowed in your margin account. Below that amount the futures position may be closed if you do not add funds to your account.

Margin Call = When your account reaches the Maintenance level and the futures broker calls you asking for more money.

7. You have to buy 145,000 in 90 days and the 90 day forward rate is $1.20. You go long one euro contract for 125,000 at the $1.20 rate. After 90 days the actual spot rate is $1.13 and you buy the 145,000 euros. Including your gain or loss on the futures contract what is your net total cost for the 145,000 euros and what is the cost per euro?