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Today (i.e., day 0), the settlement (or closing) price on a Chicago Mercantile Exchange (CME) British pound futures contract is $1.9833/. Suppose in the next

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Today (i.e., day 0), the settlement (or closing) price on a Chicago Mercantile Exchange (CME) British pound futures contract is $1.9833/. Suppose in the next two days (i.e., days 1 and 2) settlement prices are $1.9795/ and $1.9760/. The contractual size of one CME British pound contract is 62,500 per contract. The initial performance bond for British pound contract is $1,485 per contract and maintenance performance bond is $1,100 per contract. If you have a long (buy) position in one futures contract, determine the following. (1) Assuming the balance of maintenance performance bond at Day O is $1,485, what are the balances of the maintenance performance bond at the end of day 1 and day 2. (2) Given the information in (1), how much money you need to deposit to keep your contract active at the end of day 2

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