Problem:

 One day (i.e. Day 0), you opened a long position on a current month stock futures contract on Stock Y at a settlement price of $35.50. The contract multiplier was 1,000. The initial margin and the maintenance margin for the contract were $6,400 and $5,120 respectively. The settlement price of Stock Y stock futures contract was closed at the following level on each of the days afterwards: Day 1: $34.50; Day 2: $34.00; Day 3: $33.25; Day 4: $36.50. Assume margin has to be put up immediately once position is opened or if called. Ignore transaction levies.

Required:

Question 1: What would be your margin account balance at the close of each day from Day 0 to Day 4?

Question 2: If you offset your position at the close of Day 4, what would be your overall monetary gain or loss for this investment?

Note: Please provide equation and explain comprehensively and give step by step solution.