1. Use the following information to answer the next two questions:

   The pound-dollar exchange rate is $1.355/BP on 9/30, but you believe the pound will appreciate relative to the dollar over the next few days. On 9/30, you decide to open a position consisting of five futures contracts to trade based on your belief. Futures contracts on the pound have 90,000 pounds attached. The futures price 9/30 is $1.355. Your broker requires an initial margin of $13,000 per contract and a maintenance margin of $9,000 per contract.

   Find your ending margin account balance day after you open your position (10/1) if the futures price is $1.395 on that day. Assume any deficits are eliminated to keep the account open and any excess funds remain in the account.

   		47,000
   		67,600
   		83,000
   		62,400

2. Assume that you kept your account open from the previous question. The futures price on 10/2 is $1.405 per pound. What would be your ending margin balance on 10/2? Assume any deficits are eliminated to keep the account open and any excess funds remain in the account.

   		87,500
   		65,000
   		51,500
   		68,250