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Suppose that you buy $1 million worth of euro currency futures contracts. You buy the contract at a price of $1.3468/ (i.e., you commit to
Suppose that you buy $1 million worth of euro currency futures contracts. You buy the contract at a price of $1.3468/ (i.e., you commit to pay $1,000,000 $1.3468 = $1,346,800 when the contract matures). Over the next four days the contract closes at the following prices: $1.3465/, $1.3443/, $1.3434/, and $1.3534/. What would be your payments to, or withdrawals from, the margin account?
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