Solutions: In Class Exercise # 1: Tracking Profit / Loss in the Futures Market Assume that the attached futures price quote is from 9/15/XX, and that over the next two days the December futures contract price for BP changed to $1.5746, and then to $1.5446. Please use the following table to track the daily profit/loss and margin positions over the next two days, for: (1) the buyer of one December BP futures contract (2) the seller of three December BP futures contracts Note: 1 contract = BP 62,500; Initial margin = $1,485 per contract; Maintenance margin = $1,100 per contract December BP Futures Price Change in FP from previous day 9/15/XX 9/16/XX $1.5646 $1.5746 +$0.01 Total dollar profit/loss for buyer (1 C) Buyer's beginning margin Buyer's ending margin Excess/deficit ending margin for buyer $1,485 Total dollar profit/oss for seller (3 C) Seller's beginning margin Seller's ending margin Excess/deficit ending margin for seller $1,485x3 $4,455 0.01 62,500 +$625 $1,485 $1,455+$625 $2,110 $2,110 $1,485 $625 9/1