Assume today's settlement price on a CME EUR futures contract is $1.3140/EUR. You have a short position in one contract. Yourperformance bond account currently has a balance of $1,700. The next three days' settlement prices are $1.3126, $1.3133, and $1.3049.Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bondaccount after the third day. (Do not round intermediate calculations. Round your answer to 2 decimal places.)Changes in the performance bond accountW

Short position - It implies that the bond account will incur loss if settlement prices rise and…

Assume today's settlement price on a CME EUR futures contract is $1.3140/EUR. You have a short position in one contra performance bond account currently has a balance of $1,700. The next three days' settlement prices are $1.3126, $1.313 Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performa account after the third day. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Changes in the performance bond account

Assume today's settlement price on a CME EUR futures contract is $1.3140/EUR. You have a short position in one contra performance bond account currently has a balance of $1,700. The next three days' settlement prices are $1.3126, $1.313 Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performa account after the third day. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Changes in the performance bond account

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Assume today's settlement price on a CME EUR futures contract is $1.3140/EUR. You have a short position in one contract. Your
performance bond account currently has a balance of $1,700. The next three days' settlement prices are $1.3126, $1.3133, and $1.3049.
Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond
account after the third day. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Changes in the performance bond account
W

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Assume today's settlement price on a CME EUR fütures contract is $1.3176/EUR. You have a short position in one contract. Your performance bond account currently has a balance of $3,500. The next three days settlement prices are $1.3162, $1.3169, and $1.3085. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day. (Do not round intermediate calculations. Round your answer to 2 decimal places.) Balance of the performance bond account
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