Problemassume todays settlement price on a cme eur futures, Ask an Expert

Accounting

Problem:

Assume today's settlement price on a CME EUR futures contract is $1.3000/EUR. You have a long position in one contract of EUR 125,000. Your performance bond account currently has a beginning balance of $3,250. The next three days' settlement prices are $1.2815, $1.2955, and $1.3000.

Required:

Question: Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day.

Note: Please provide reasons to support your answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91171897

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