Determine the trader total gains or losses

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Assume an investor takes a long position in 2 September KLSE CI futures contract on 17th July. The futures contract price is RM1613.00 The initial margin and maintenance margin are RM6,000/contract and RM4,000.00/contract respectively. The trader closes his position on the fifth day. The futures settlement prices during those five days are:

Day 1 RM1611.00

Day 2 RM1615.00

Day 3 RM1620.00

Day 4 RM1610.00

Day 5 RM1608.00

The contract size is RM50/contract.

a. Determine the trader's total gains or losses.

b. How much does the trader pay (if any) for "margin call"?

Reference no: EM132601561

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