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Long position in the futures contract

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Reference no: EM131071824

Today's settlement price on a Chicago Mercantile Exchange (CME) Yenfutures contract is $0.8011/¥100. Your margin account currently has a balance of$2,000. The next three days' settlement prices are $0.8057/¥100, $0.7996/¥100, and$0.7985/¥100. (The contractual size of one CME Yen contract is ¥12,500,000). You have a short position in one futures contract.

(a) Calculate the changes in the margin account from daily marking-to-market and the balance of the margin account after the third day.

(b) Do the problem again assuming you have a long position in the futures contract.

Reference no: EM131071824

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