Your account Day price (USD) adjustment(RM) You have gone short 5 February Cocoa futures contracts. The future price is USD4,040 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 Future settlement = 10 tons per contract = 10 percent of total value = 70 percent of initial margin Balance (USD) Counterparty Balance adjustment(RM) (USD) 0 4,040 1 4,055 2 4,052 3 4,090 4 4,095 (a) Explain the derivatives instruments. (5 marks) (b) Calculate the long account adjustment and balance (10 marks) (c) Calculate the counterparty adjustment and balance (10 marks)