Ending margin balance on wednesday

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1. An investment banker believes that the dollar will appreciate relative to the euro over the next few days. The banker decides to use two euro futures contracts to trade based on her belief. Each contract has 150,000 euros attached. The initial and maintenance margin is $15,000 and $10,000 per contract, respectively. The futures price on the day the banker opened her position (Tuesday) was $1.625.

The futures price on Wednesday is $1.605. Find the banker's ending margin balance on Wednesday. (Assume any deficits are eliminated to keep the account open and any excess funds remain in the account)

A. 24,000

B. 36,000

C. 18,000

D. 15,000

E. none of the above

2.The futures price on Thursday is $1.665. Find the banker's ending margin balance (in USD) on Thursday. Assume any deficits are eliminated to keep the account open and any excess funds remain in the account. Round intermediate steps to four decimals and your final answer to two decimals. Do not use currency symbols or words when entering your response.

3.The futures price on Friday is $1.615. Find the banker's ending margin balance (in USD) on Friday. Assume any deficits are eliminated to keep the account open and any excess funds remain in the account. Round intermediate steps to four decimals and your final answer to two decimals.

Reference no: EM132286156

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