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What is the daily gain-the account balance

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An investor takes a short position in three corn futures contracts (5,000 bushels each) at a price of 350 cents per bushel. The initial margin is $1,750 per contract and the maintenance margin is $1,300 per contract. Track the margin account balance over the next five days given the following information. You should assume that the investor makes any necessary deposit in the event of a margin call. The settlement prices are as followed: Day 1 is $348, day 2 is $353, day 3 is $357, day 4 is $360, and day 5 is $355. For days 1 through 5, what is the daily gain, the account balance, and the margin call?

Reference no: EM132589471

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