Assume today's settlement price on a CME EUR futures contract [with EUR 125,000 per contract] is $1.1500/EUR. You have ashort position in one contract. Your performance bond account currently has a balance of $2,500. The next three days'settlement prices are $1.1450/EUR, $1.1400/EUR, and $1.1600/EUR. Calculate the changes in the performance bond accountfor each day (show the value each day) from daily marking-to-market and the balance of the performance bond account at theend of the third day. (fill in each box below with the dollar amount in the margin account after settlement each day, use whole dollars,no decimals, no $ symbol)Performance bond/margin-Day1Performance bond/margin-Day2Performance bond/margin-Day3

In daily marking to market method, the account balance is altered each day based on the gain or loss…

Assume today's settlement price on a CME EUR futures contract (with EUR 125,000 per contract] is $1.1500/EUR. You have a short position in one contract. Your performance bond account currently has a balance of $2,500. The next three days' settlement prices are $1.1450/EUR, $1.1400/EUR, and $1.1600/EUR. Calculate the changes in the performance bond account or each day (show the value each day) from daily marking-to-market and the balance of the performance bond account at the and of the third day. (fill in each box below with the dollar amount in the margin account after settlement each day, use whole dollars, decimals, no $ symbol) formance bond/margin-Day1 armance bond/margin-Day2 mance bond/margin-Day3

Assume today's settlement price on a CME EUR futures contract (with EUR 125,000 per contract] is $1.1500/EUR. You have a short position in one contract. Your performance bond account currently has a balance of $2,500. The next three days' settlement prices are $1.1450/EUR, $1.1400/EUR, and $1.1600/EUR. Calculate the changes in the performance bond account or each day (show the value each day) from daily marking-to-market and the balance of the performance bond account at the and of the third day. (fill in each box below with the dollar amount in the margin account after settlement each day, use whole dollars, decimals, no $ symbol) formance bond/margin-Day1 armance bond/margin-Day2 mance bond/margin-Day3

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter5: Currency Derivatives

Section: Chapter Questions

Problem 3IEE

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