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You have one euro contract (125,000) to buy the euro in December at an exercise price of $1.02/1. The December euro contract has increased in
You have one euro contract (125,000) to buy the euro in December at an exercise price of $1.02/1. The December euro contract has increased in price to 1.06/1. You had to put 5% of the initial dollar value of the contract into your Futures brokerage account as margin (a good faith amount that is your account equity and assures payment in case you lose money on the contract). What was the initial balance in your margin account and what is the balance after the euro price changed to 1.06/1?
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