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Problem 1. You want to enter 3 March contracts to buy euros at $1.17. The Initial Margin requirement is 3% and the Maintenance requirement is

Problem 1. You want to enter 3 March contracts to buy euros at $1.17. The Initial Margin requirement is 3% and the Maintenance requirement is 30% of Initial Margin requirement.

For Problem #1, if the exchange rate goes to $1.14/1 what will be the gain or loss on your futures contracts?

For Problem #1, if the exchange rate goes to $1.22/1 what will be the gain or loss on your futures contract?

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