What was the balance in alan margin account

Reference no: EM132721594

Question - Alan bought a futures contract on a commodity on the New York Commodity Exchange on June 1. The futures price was USD 500 per unit and the contract size was 100 units per contract. Alan set up a margin account with initial margin of USD 2,000 per contract and maintenance margin of USD 1000 per contract. The futures price of the commodity varied as shown below.

Day	Futures Price (USD)
June 1	497.30
June 2	492.70
June 3	484.20
June 4	471.70
June 5	468.80

Required - What was the balance in Alan's margin account at the end of day on June 5?

Reference no: EM132721594

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