Paola and Sofiyat have taken a short position in one Chicago Board of Trade Treasury Bonds futures contract with a fce value of $100'000 at a price of 96-6/32. The initial margin requirement is $2'700 and the maintenance margin is $2'000. Paola and Sofiyat would meet all margin calls but would not withdraw any excess margin. Complete the Table below and provide an explanation of any funds ceposited . Assume that the contract is purchased at the settlement price of the day hence no mark-to market profit or loss on the day of purchase (TIP 96 - 6/32 means the price is at 6/32 = 187.50 hence price stands at $96'187.50 (5% marks)

b). How much are Paolas total gains or Losses by the end of day 6 ?

Day Beg. Balance, Funds Deposited. Futures Price. Price Change. Gain/ Loss. End Bal. 1 96-06 1 96-31 25/32 (781.25) 2 97-22 3 97-18 4 97-24 5 98-04 6 97-31 Day Beg. Balance, Funds Deposited. Futures Price. Price Change. Gain/ Loss. End Bal. 1 96-06 1 96-31 25/32 (781.25) 2 97-22 3 97-18 4 97-24 5 98-04 6 97-31