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Your firm shorts 30 March 2009 Euro futures contracts with a future price of 1.510 for 5 days. Each contract has a $2100 initial margin and a $2100 maintenance margin. Each contact has a 125,000 Euro face value. For the next five days, the settlement prices of the March Euro contract are going to be 1.512, 1.514, 1.511, 1.509, and 1.507, respectively.

Show how the settlement value of your position changes over the five days.

Determine the marked-to-market profits and losses for the five days.

Do you get any margin call? If yes, for how much and on which days?

 

Basic Finance, Finance

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