Question
You have sold forward 200 contracts at a price of $700 on March 5. The initial margin is 10,000 and the maintenance margin is 6,000.
You have sold forward 200 contracts at a price of $700 on March 5. The initial margin is 10,000 and the maintenance margin is 6,000. Here are the settlement prices:
Date Settlement price
5-Mar 625.48
6-Mar 688.30
7-Mar 731.60
8-Mar 715.80
9-Mar 615.20
By establishing a marking to market table and after solving it for the different days, fill in the blanks below. Assume that margin calls are due immediately.
You will receive a margin call of $_________ on March___.
You close out your transaction at the closing on March 9 with a profit of $__________.
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