Question
You have gone long 4 September CPO futures contracts. The futures price is RM2,000 per ton. Assuming a counterparty has the same total value, determine
You have gone long 4 September CPO futures contracts. The futures price is RM2,000 per ton. Assuming a counterparty has the same total value, determine the daily marking-to-market adjustment to both account and the balance on the 5th day.
Contract size : 25 tons
Initial margin : 10% of total value
Maintenance margin: 80% of initial margin
Day 0 1 2 3 4 5 Futures Sett Price RM2000 RM2050 RM2070 RM1950 RM1990 RM2000 Your Acct Adj Balance Counterparty Adj Balance
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
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