Assume today's settlement price on a CME EUR futures contract is $1.3160/EUR. You have a long position in one contract. Yourperformance bond account currently has a balance of $2,700. The next three days' settlement prices are $1.3146, $1.3153, and$1.3069. Calculate the changes in the performance bond account from daily marking-to-market and the balance of the performancebond account after the third day. (Do not round intermediate calculations. Round your answer to 2 decimal places.)> Answer is complete but not entirely correct.Balance of the performance bond account$3,837.50 x

In future contracts the need of margin balance in the account and daily settlement of margin account…

Answered: $1.3069. Calculate the changes in the…

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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$1.3069. 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.)