On Monday morning an investor takes a long position in a pound futures contract that...
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On Monday morning an investor takes a long position in a pound futures contract that matures on Wednesday afternoon. The agreed-upon price is $1.78 for 62,500. At the close of trading on Monday, the futures price has risen to $1.79. At Tuesday close, the price rises further to $1.80. At Wednesday close, the price falls to $1.785 and the contract matures. The investor takes delivery of the pounds at the prevailing price of $1.785. Detail the daily settlement process. Initial and maintenance performance bond for pound are $4450 and $3,000, respectively.
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