Assume today's settlement price on a CME EUR futures contract is $1.3140 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 $1,700. The nextthree days' settlement prices are $1.3126, $1.3133, and $1.3049. Calculate the changes in the performance bond account from dailymarking-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

In future trading is done on margin basis and there is daily settlement of margin account.Given:Spot…

price on a CME EUR futures contract is $1.3140 per euro. You have a long position in one contra size of one EUR contract. Your performance bond account currently has a balance of $1,700. Th es are $1.3126, $1.3133, and $1.3049. Calculate the changes in the performance bond account fro balance of the performance bond account after the third day. ediate calculations. Round your answer to 2 decimal places. WTTTTTTT

price on a CME EUR futures contract is $1.3140 per euro. You have a long position in one contra size of one EUR contract. Your performance bond account currently has a balance of $1,700. Th es are $1.3126, $1.3133, and $1.3049. Calculate the changes in the performance bond account fro balance of the performance bond account after the third day. ediate calculations. Round your answer to 2 decimal places. WTTTTTTT

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter5: Currency Derivatives

Section: Chapter Questions

Problem 3IEE

See similar textbooks

Similar questions

Assume today’s settlement price on a CME EUR futures contract is $1.3144 per euro. You have a short position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond account currently has a balance of $1,900. The next three days’ settlement prices are $1.3130, $1.3137, and $1.3053. 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.
Assume today's settlement price on a CME EUR futures contract is $1.3154 per euro. You have a short position in one contract. EUR125,000 is the contract size of one EUR contract. Your performance bond account currently has a balance of $2,400. The next three days' settlement prices are $1.3140, $1.3147, $1.3063. 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 [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 for each day (show the value each day) from daily marking-to-market and the balance of the performance bond account at the end 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-Day1 Performance bond/margin-Day2 Performance bond/margin-Day3
Assume today's settlement price on a CME EUR futures contract is $1.1140/EUR. You have a short position in one contract with a standard contract size of 125,000€. Your performance bond account currently has a balance of $2,000. The next three days' settlement prices are $1.1126, $1.1133, and $1.1050. Calculate the balance of the performance bond account after the third day.
am. 122.
Assume today's settlement price on a CME EUR futures contract is $1.3160/EUR. You have a short position in one contract. Your performance bond account currently has a balance of $1,800. The next three days' settlement prices are $1.3130, S1.3140, and $1.3100. 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.
Assume today's settlement price on a CME EUR futures contract is $1.3166/EUR. You have a long position in one contract. Your performance bond account currently has a balance of $3,000. The next three days' settlement prices are $1.3152, $1.3159, and $1.3075. 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
Assume today's settlement price on a CME EUR futures contract is $1.3160/EUR. You have a long position in one contract. Your performance 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 performance bond 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
Assume today's settlement price on a CME GBP futures contract is $1.4948/£. You have a short position in one contract (with the standardized contract size of £62,500). Your initial performance bond account currently has a balance of $4,000 and the maintenance level is $2,500. The next three days' settlement prices are $1.4908, $1.5088, and $1.5208. Fill out the following table by calculating the changes in the performance bond account from daily marking-to-market and the balance of the performance bond account after the third day. Day Settlement price ($/£) Daily Gain/Loss (5) Account balance (5) 0 1.4948 1 1.4908 2 1.5088 3 1.5208 $4,000 Daily account balance (please fill out ONLY the account balance, not daily profit/loss): Day 1: $4250 Day 2: $ 3.125 Day 3: $750 Total profit/loss: Day 3: $ 750 Total profit/loss: $ -1.625 . (Use negative sign in front of the number for loss) Are you going to have a margin call during the three-day trading period? Answer: Yes (yes/no). If your answer…
Assume today’s settlement price on a CME EUR futures contract is $1.3140/EUR. You have a long 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.)
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
This morning (Day 0) you take a short position in a pound futures contract that matures in 3 days (Day 3). The future price is $1.9750 today. The contract size is £62,500 and its initial performance bond and maintenance bond are $2,430 and $1,830, respectively. a. (b) Assuming that the daily settlement prices are indicated below, how would the daily change in settlement future prices affect your account? Show the daily gain/loss and account balance. Day 0 1 2 3 Settlement 1.9750 1.9700 1.9815 1.9907 Total Gain/Loss Account Balance b. During this period, did you receive a margin call? If you did, on what day? c. At the end of Day 3, how much in total did you make/lose on this futures contract?