Calculate the changes in the performance bond account

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Problem: Assume today's settlement price on a CME EUR futures contract is $1.3140/EUR. You have a short position in one contract. Your performance bond account currently has a balance of $1,700. The next three days' settlement prices are $1.3126, $1.3133, and $1.3049. (EUR125,000 is the contract size of one EUR contract.)

Required:

Question 1: Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day.

Question 2: Do problem 5 again assuming you have a long position in the futures contract.

Reference no: EM132466061

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