QUESTION $3$

On December ${13}^{th}2022,$ a trader takes a long position in five $(5)$ British pound futures contracts at an

opening price of USD$1\mathrm{.}1753.$ The settlement prices for December ${13}^{th},{14}^{th}$ and ${15}^{th}$ are USD$1\mathrm{.}1700,$

USD$1\mathrm{.}1680,$ and USD$1\mathrm{.}1740$ respectively. On December ${16}^{th,}2022,$ the trader decided to close out the

contract at a price of USD$1\mathrm{.}1747.$ The margin account currently has a balance of USD$10,000$ and a

minimum of USD$8,000$ must be maintained.

Calculate the daily marked$-$to$-$market transactions and the changes in the margin account. Determine

the net profit or loss from the futures contracts $($assume one contract size of the British pound is $62,500$

units$).$