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XYZ Inc. decides to use aluminum futures contracts to fully hedge a payment of 125 tons of aluminum that's due in four days. Each futures

XYZ Inc. decides to use aluminum futures contracts to fully hedge a payment of 125 tons of aluminum that's due in four days. Each futures contract has 25 tons of aluminum attached and carries an initial and maintenance margin of $3400 and $2500, respectively. The futures price was $1625/ton the day XYZ opened its futures position. The table below shows the futures prices for the four days immediately after XYZ opened its position.

Day 1

Day 2

Day 3

Day 4

$1627

$1622

$1616

$1621

Find XYZ's ending margin balance on Day 2. Assume deficits are eliminated to keep the position open and excesses remain in the account.

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