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You have gone long 10 June Crude Palm Kernel Oil futures contracts. The future price is RM1,800 per ton. Given the following information, determine the
You have gone long 10 June Crude Palm Kernel Oil futures contracts. The future price is RM1,800 per ton. Given the following information, determine the daily marking-to-market adjustment to both you and the counterparty account. (Assuming same total value) Contract size Initial margin Maintenance margin = 10 tons per contract 10 percent of total value = 70 percent of initial margin Day Future settlement price (RM) 1,800 Your account adjustment(RM) Balance (RM) Counterparty adjustment(RM) Balance (RM) 0 1 2,000 N 1,990 3 1,950 4 4 2,100 (15 marks)
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