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
Chapter5: Currency Derivatives
Section: Chapter Questions
Problem 3IEE
Related questions
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F97537b36-1ec9-430e-86b3-8c476f0fc993%2Fedc2344a-c97a-4c53-bad0-efeb1dd60751%2F0lo0w9c_processed.png&w=3840&q=75)
Transcribed Image Text: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
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you