Assume today's settlement price on a CME EUR futures contract is $1.3172 per euro. You have a long position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond account currently has a balance of $3,300. The next three days' settlement prices are $1.3158, $1.3165, and $1.3081. 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. Required: Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Balance of the performance bond account

Assume today's settlement price on a CME EUR futures contract is $1.3172 per euro. You have a long position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond account currently has a balance of $3,300. The next three days' settlement prices are $1.3158, $1.3165, and $1.3081. 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. Required: Note: Do not round intermediate calculations. Round your answer to 2 decimal places. Balance of the performance bond account

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter5: Currency Derivatives

Section: Chapter Questions

Problem 3IEE

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Question

am. 122.

Assume today's settlement price on a CME EUR futures contract is $1.3172 per euro. You have a long
position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond
account currently has a balance of $3,300. The next three days' settlement prices are $1.3158,
$1.3165, and $1.3081. 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.
Required:
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Balance of the performance bond account

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