The Belgian Future and Options Exchange (BELFOX) lists a ZAR futures contract at a futures price of 0,0525EUR per ZAR. The size of the contract is ZAR1m and the contract terms state an initial margin of EUR70 000 and a maintenance margin of EUR3 000 per contract. You decide to buy 10 contracts which matures on 30th December; today is the 1st July and the spot rate today is 0,0500EUR per ZAR. The following prices are observed over the period:

	01-July	01-Aug	01-Sep	01-Oct	01-Nov	30-Dec
Spot ZAR/USD	0,0500	0,0513	0,05200	0,05170	0,05270	0,0550
Future ZAR/USD	0,0525	0,0500	0,0530	0,0525	0,0535	0,0525

Required:

1. Based on the information provided, indicate the cash flows of you position over the period.
2. For each day of data provided, give a description of the adjustment to your margin account and indicated how your got to the adjusted amount.
3. What is the total gain/loss on the contract? Explain why this gain/loss on the contract is seen.

Use the following table as a template for your solution; a full description of each transactions and its impact on the margin position should accompany the table.

	01-Jul	01-Aug	01-Sep	01-Oct	01-Nov	30-Dec
Gain / Loss
Margin before cash flow
Cash flow from investor
Margin after Cash Flow