Find ending margin account balance

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The dollar/franc spot exchange rate is $1.055/CHF on 3/1, but you believe the franc will appreciate relative to the dollar over the next few days. On 3/1, you decide to open a position consisting of four Swiss franc futures contracts to trade based on your belief. Each futures contract consists of 100,000 francs. The futures price 3/1 is $1.045/CHF. Your broker requires an initial margin of $1000 per contract and a maintenance margin of $800 per contract.

Find your ending margin account balance (in USD) the day after you open your position (3/2) if the futures price is $1.049 on that day. Assume any deficits are eliminated to keep the account open and any excess funds remain in the account.

A. 5600

B. 4000

C. 1400

D. 3200

E. none of the above

Assume that you kept your account open from the previous question. The futures price on 3/3 is $1.051/CHF. What would be your ending margin balance (in USD) on 3/3? 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: EM132286157

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