Futures contracts have initial margin

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1. The CME EUR futures contracts have an initial margin of USD 3,200 per contract and a maintenance margin of USD 2,000. If, after marking your futures contract to market, your margin stands at USD 1,600, how much is your variation margin?

a) USD 1,600

b) USD 400

c) USD 2,000

d) USD 3,200

2. The euro futures at the CME has a contract size of € 100,000, and a week ago you took a long position on the € at the futures price of $1.05/€. If the spot exchange rate right now is $1.09/€, how much is your profit/loss?

a) +$5,000

b) +$4,000

c) -$4,000

d) -$5,000

Reference no: EM131886347

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