Suppose on march 8th 2017 a us trader goes short 10 futures, Ask an Expert

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Suppose on March 8th 2017, a US trader goes short 10 futures contracts for EUR, maturity in 110 days. Each euro contract is worth €125,000. The initial margin is $6,000 per contract, and the maintenance margin is $4,250 per contract. Suppose over the next 10 days (after position is initiated) the futures price for the EUR/USD was as follows (example 1.0541 on March 8th 2017 means $1.0541 = €1): 21-Mar-17 1.0811 20-Mar-17 1.0739 17-Mar-17 1.0738 16-Mar-17 1.0766 15-Mar-17 1.0735 14-Mar-17 1.0604 13-Mar-17 1.0654 10-Mar-17 1.0672 9-Mar-17 1.0577 8-Mar-17 1.0541 Prepare a table showing changes to the traders margin account over these 10 days.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92678475

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