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Question - Four days ago you entered into a futures contract to sell €125,000 at $1.41 per euro. The spot exchange rate when you entered the contract was $1.37. Your initial performance bond was $7,300 and your maintenance level was $2,900. Over the past four days (in order) the contract has settled at $1.42, $1.41, $1.45, and $1.43. What should your performance account balance be at the end of the four days? (Assume you do not withdraw excess funds and only add funds if required).

A. $4,800

B. $2,500

C. $11,050

D. $1,250

E. $14,800

F. $9,800

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Category:- Basic Finance
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