Assume today’s settlement price on a CME EUR futures contrac…
Assume today’s settlement price on a CME EUR futures contract is $1.3140/EUR. You have a LONG position in one contract. Your performance bond (margin) account currently has a balance of $1,700. The next three days’ settlement prices are $1.3126, $1.3133, and $1.3049. (Note: the contract size for euro futures contract traded at CME is €125,000) 1. Calculate the gain/loss from daily marking-to-market. Day 1: Day 2: Day 3: 2. If you want to close your position at the end of day 3, what is your total gain or loss in the past three days? 3. What is the margin account balance at the end of day 3?
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