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What is the balance on margin account

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Assume that you have sold two Australian dollar (AUD) futures contracts at the closing price on day t=0. Over the subsequent days, the futures price has evolved as shown in the following table. All values are the closing futures price for that day.

Day Futures Price t=0 CHF1.0742/AUD

t=1 CHF1.0819/AUD
t=2 CHF1.0780/AUD
t=3 CHF1.0745/AUD
t=4 CHF1.0722/AUD

Each futures contract on the Australian dollar has a size of AUD125,000, an initial margin of CHF2,000, and a maintenance margin of CHF1,300. In addition, assume that you never withdraw any excess funds from your margin account and always meet any required margin calls.

What is the balance on your margin account at the end of day t=4?

Reference no: EM133068311

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