On Monday morning, your buy one CME British Pound futures contract (i.e., you sell BP)...
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On Monday morning, your buy one CME British Pound futures contract (i.e., you sell
BP) containing BP 62,500 at a price of $1.4118. Suppose the broker requires an initial margin of $1,925 and a maintenance margin of $1,750. The settlement prices for Monday through Friday are $1.4108, $1.4118, $1.4085, $1.4076, and $1.4072, respectively. Assume that you begin with an initial balance of $2,000. Fill out the following tables. Make sure you show your calculation. (To get exact answers, show 4 digits after the decimal point. If your calculation cant show 4 digits after the decimal point, use excel spread sheet for the calculation)
Monday
Morning
Monday
Close
Tuesday
Close
Wednesday
Close
Thursday
Close
Friday
Close
Future price
$1.4118
$1.4108
$1.4118
$1.4085
$1.4076
$1.4072
Daily gain/Loss
Remaining
Balance
Variation Margin
Balance
Answer & Explanation
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