Performance bond account balance

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Assume today's settlement price on a CME EUR futures contract is $1.30/€. The contract is written on €125,000 and you have a short position in one contract. The initial performance bond is $6,500, and the maintenance performance bond is $4,000.

a. On day 1, the settlement price became $1.29/€, what is your performance bond account balance at end of day 1?

b. On day 3, the settlement price became $1.32/€, you decide to close your position. What is your total gain or loss?

Reference no: EM133074016

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