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ent 2 Ch3 Part 1 Oladayo Ajao: Attempt 1 OUVEAU On 1/24 at the end...

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Accounting

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ent 2 Ch3 Part 1 Oladayo Ajao: Attempt 1 OUVEAU On 1/24 at the end of the day, you sold (took a short position in) 1 futures contract (one contract is agreement to buy or sell Euros 45,500) at a rate of USD 1.35 per Euro. contract expires on 3/18. Initial margin=$1,330 and maintenance margin is $1,005. On 1/25 and 1/26, the futures rate expiring on 3/18 is USD 1.365, and USD 1.370 respectively. As per "Marked to Market" daily mechanism of currency futures contracts, what shall be your margin account balance at the end of 1/25(Assuming that you'll not withdraw money from your margin account)? On 1/25, you received a margin call from the broker to deposit $357.5 to bring up your margin balance on 1/25 back to $1,005. On 1/25, you received a margin call from the broker to deposit $682.5 to bring up your margin balance on 1/25 back to $1,330. On 1/25, your margin balance was $2.012.5 due to the gain of $682.5 realized from the change in the futures rate. On 1/25, your margin balance was $647.5 due to the loss of $682.5 realized from the change in the futures rate, de 90

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