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Suppose that you bought eight Euro currency futures contracts (i.e., a total of one million Euros) with an initial margin of $2,835 per contract. You
Suppose that you bought eight Euro currency futures contracts (i.e., a total of one million Euros) with an initial margin of $2,835 per contract. You buy the contracts at $1.3468/Euro and after a few days of trading, the contract ends at a price of $1.3534/Euro. The following sequence gives the ending prices each day: $1.3465, $1.3443, $1.3434, and $1.3534. What would be the margin account value sequence? Starting value is $22,680 (i.e., 8 x $2,835 = $22,680).
$22,680, $22,180, $20,380, $19,280, $29,280 |
$22,680, $22,380, $20,180, $19,280, $29,280 |
$22,680, $22,180, $19,280, $22,380, $29,280 |
none of these answers |
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