The pound to fall and enters into a contract to sell pounds

Reference no: EM13769606

The futures price of british pounds is $2.00. futures contracts are for 10,000 so a contract is worth $20,000. The margin requirement is $2,000 a contract, and the maintenance market requirement is $1,200. A speculator expects the price of the pound to fall and enters into a contract to sell pounds.
How much must the speculator initially remit?
If the futures price rises to $2.13, what must the speculator do?
If the futures price continues to rise to $2.14 how much does the speculator have in the account?

Reference no: EM13769606

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