Question 1

i)

A trader enters into an Australian Dollar futures contract to buy $A150,000 at a price of US$.8060 per Australian dollar. The initial margin on this contract is US$6,000 and the maintenance margin is $3,100. At what futures price will the maintenance margin level be reached?

ii)

Suppose that on Feb 10, 2018 you bought an ASX S&P 200 Share Price Index (SPI) futures

contract at an index level of 3999. Four weeks later you closed out this contract at an index

level of 3200. Your profit/loss) in regards to this transaction was?