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You as a farmer have gone short 15 March Cocoa futures contracts. The 5-day period using hypothetical futures settlement prices. On the day 0 which

You as a farmer have gone short 15 March Cocoa futures contracts. The 5-day period using hypothetical futures settlement prices. On the day 0 which both parties enter the contract. Given the following information, determinethe daily marking-to-market adjustment to both you and the counterparty account. (Assuming same total value)

Contract size = 10 tons per contract

Initial margin = 10 percent of total value

Maintenance margin = 70 percent of initial margin

Day

Cocoa Futures Settlement Price (RM per ton)

Your account adjustment(RM)

Balance (RM)

Counterparty adjustment(RM)

Balance (RM)

0

100

1

95

2

96

3

98

4

96

5

90

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