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Determine the net profit or loss from the futures contract

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Reference no: EM132753283

Problem 1: On Monday morning, a trader takes a long position in two CAD futures contract that matures on Wednesday afternoon. The agreed-on price is USD1.7500 for CAD100,000. At the closing price on Monday, the price has risen to USD1.7900. As for Tuesday and Wednesday, the closing price is USD1.7600 and USD1.7800, respectively. Show the daily marked-to-market transactions on the trader's account and determine the net profit or loss from the futures contract.

Reference no: EM132753283

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