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Suppose today you long one contract of British Pound futures contract listed on the Chicago Mercantile Exchange. One contract is of size 62,500. Suppose the

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Suppose today you long one contract of British Pound futures contract listed on the Chicago Mercantile Exchange. One contract is of size 62,500. Suppose the initial and maintenance performance bond are respectively US$2,800 and US$2,400 per contract. You enter into the contract at the futures rate of US$1.3602/ and deposit the required initial margin (i.e., initial performance bond). The followings are the futures rates realized at the end of each of the next four trading days. What is the daily profit (or loss) in each of these four trading days? What is the balance of your brokerage account at the end of each of these four trading days? What will be the futures rate at the end of the fifth day that will result in a margin call? Assuming you have not deposited/withdrawn any money to/from your account from Day 1 to Day 4. Day 1 Day 2 Day 3 Day 4 Futures rate US$1.3621/ US$1.3645/ US$1.3542/ US$1.3665/

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