I am looking for someone to build a spreadsheet in excel thatcan quickly answers these type of questions by inputting the data.Thanks

1.Suppose that on Monday, 16November, you assume a long position in one yen futures contract atthe futures price of $0.0083. The initial margin is $4,590, and themaintenance margin is $3,400. The contract size is ¥12,500,000. Forsimplicity, you do not withdraw excess money from your marginbalance. All margin requirements are met with cash. You short thesame contract (i.e., a reversing trade) at the opening price onMonday, 23 November. Make sure you can calculate all the numbers inthe following table except the settlement prices that aregiven.

Trading Day	Settlement Price	Marking to Market	Deposit/withdrawal	Account Balance
Nov. 16	$.0085	$2,500	$4,590a	$7,090
Nov. 17	.0081	-5,000	1,310b	3,400
Nov. 18	.0078	-3,750	3,750	3,400
Nov. 19	.0077	-1,250	1,250	3,400
Nov. 20	.0080	3,750		7,150
Nov. 23	.0081c	1,250		8,400
			-8,400d	0
Total		-2,500	2,500e (loss)

Notes:       

a.$4,590 initial margin deposit.

b.$1,310 deposit to meet $3,400maintenance margin.

c.$.0081 opening futures price on 23November.

d.Entire account balance withdrawnafter reversing trade.

e.Note that -$2,500 =($.0081-.0083)(12,500,000).

Now assume that Nov. 23 is also thematurity date for the contract. Instead of doing the reversingtrade described above, you take the delivery of the yen and pay theclosing (settlement) price of $0.0078. Recalculate the numbers forNov. 23 and the total gain/loss.

Trading Day	Settlement Price	Making to Market	Deposit/withdrawal	Account Balance
Nov. 16	$.0085	$2,500	$4,590	$7,090
Nov. 17	.0081	-5,000	1,310	3,400
Nov. 18	.0078	-3,750	3,750	3,400
Nov. 19	.0077	-1,250	1,250	3,400
Nov. 20	.0080	3,750		7,150
Nov. 23	.0078	-2,500		4,650
			-4,650	0
Total		-6,250	6,250 (loss)

You take the delivery and pay $97,500(= $.0078(12,500,000)), but you lose $6,250 from the dailysettlements. Therefore your total cost is $103,750. If you insteadenter into a forward contract to buy the same amount of yens at theforward price of $.0083 on Nov.16, assuming that the forwardcontract matures on the same day as the futures, your cost fortaking the delivery is also $103,750 (= $.0083(12,500,000)).

2.On Monday, November 16, you assumea short position in one March Euro futurescontract at futures price of $1.20/€. The initial margin is $2000,and the maintenance margin is $1500. The contract size is €125,000.You enter the reversing trade (long position) atthe opening price ($1.19) on Monday, November 23. Make sure you cancalculate all the numbers in the following table except thesettlement prices that are given.

Trading Day	Settlement Price	Marking to Market	Deposit/withdrawal	Account Balance
Nov. 16	$1.18	$2,500	$2,000	$4,500
Nov. 17	1.21	-3,750	750	1,500
Nov. 18	1.22	-1,250	1,250	1,500
Nov. 19	1.24	-2,500	2,500	1,500
Nov. 20	1.18	7,500		9,000
Nov. 23	1.19	-1,250		7,750
			-7,750	0
Total		1,250	1,250 (gain)

On Nov. 16, the closing price islower than the entry price. However, since this is a shortposition, a decrease in price results in a gain.

The total gain, $1,250 is also equalto the difference between the entry price and the final price timesthe contract size, $(1.20-1.19)(125,000).

Assume November 23 is the maturityday of the futures contract. The spot rate and the futures priceconverge on the price of $1.22. You pay the spot rate, $1.22, tobuy the euros to deliver to close the position. Recalculate thenumbers for Nov. 23 and the total gain/loss.

Trading Day	Settlement Price	Marking to Market	Deposit/withdrawal	Account Balance
Nov. 16	$1.18	$2,500	$2,000	$4,500
Nov. 17	1.21	-3,750	750	1,500
Nov. 18	1.22	-1,250	1,250	1,500
Nov. 19	1.24	-2,500	2,500	1,500
Nov. 20	1.18	7,500		9,000
Nov. 23	1.22	-5,000		4,000
			-4,000	0
Total		-2,500	2,500 (loss)

You pay $1.22 to buy the euros in thespot market and deliver the euros at $1.22 to close the future’sposition, so there is no gain/loss on the delivery; however, youlose $2,500 on the futures position. So your total loss is $2,500,which is equal to the difference between the entry price, $1.20,and the final price, $1.22, times the contract size. If you insteadenter into a forward contract to sell the same amount of euros atforward price of $1.20 on November 16, assuming that the forwardcontract matures on the same day as the futures, on November 23 youare obligated to buy the euros at $1.22 in the spot market todeliver at the forward price of $1.20. Your loss is $2,500(=$(1.22-1.20)(125,000)). Therefore, the futures and the forwardcontracts yield the same result.