You are fascinated by cryptocurrencies and open an account to trade bitcoin futures on CME. You long one futures contract and the contract size is 5 bitcoins. When you open the trade, the futures price is $7,000 per bitcoin. The initial margin is 47.3% of the futures price and the maintenance margin is 43%.

a) How much cash do you have to post as margin to open the position?

b) At the end of the first trading day, bitcoin rises to $7,500. How much cash is in your margin account after the daily settlement?

c) At the end of the second trading day, bitcoin drops to $6,440? Would you get a margin call? If yes, how much additional cash do you have to post?

d) Suppose you close your position at the end of the second day. What is your total investment return?