Suppose on Monday June 1, I long and you short the futures contract on 1,000,000 Canadian Dollars for December delivery. We enter the positions when the exchange rate is $0.75 US/CAD. We are required to post margins equal to 10% of the contract amount. On Tuesday June 2, the December contract settles at $0.74. Between Monday and Tuesday, your account will be market-to-market by what amount?

A) (0.74 0.75) = -0.01

B) (0.75 0.74) = 0.01

C) (0.74 0.75) * 1,000,000 = -10,000

D) (0.75 0.74) * 1,000,000 * 10% = 1,000

E) None of the above