Question Three weeks ago, you purchased a 1-year futures contract on a non-dividend paying stock. You are given: Week Futures price 0 998.79 1 1018.79 2 1038.84 3 1011.22 Your initial deposit was 500 and the continuously compounded interest rate is 5%. The contract is marked-to-market every weekend. Determine the amount in our margin account at the end of the third week. Possible Answers A 508 B 514 C 520 D 526 E 532 Question Three weeks ago, you purchased a 1-year futures contract on an index. You are given: Time (in week) Futures price 0 1050 1 1075 2 1060 3 K Your initial deposit was 100 and the continuously compounded interest rate is 10%. The contract is marked-to-market every weekend. You are required to make deposit if the account balance is less than or equal to 0. Determine minimum value of K so that you are not required to make deposit into your margin account this weekend. Possible Answers A 850 B 950 C 1050 D 1150 E 1250