On Monday morning, your buy one CME British Pound futures contract (i.e., you buy BP) containing...

On Monday morning, your buy one CME British Pound futures contract (i.e., you buy BP) containing BP 62,500 at a price of $1.4118. Suppose the broker requires an initial margin of $1,925 and a maintenance margin of $1,750. The settlement prices for Monday through Friday are $1.4108, $1.4118, $1.4085, $1.4076, and $1.4072, respectively. Assume that you begin with an initial balance of $2,000 (not $1,925). Fill out the following tables. Make sure you show your calculation. (To get exact answers, show 4 digits after the decimal point. If your calculation can’t show 4 digits after the decimal point, use excel spread sheet for the calculation) (9 points)

	Monday Morning	Monday Close	Tuesday Close	Wednesday Close	Thursday Close	Friday Close
Future price	$1.4118	$1.4108	$1.4118	$1.4085	$1.4076	$1.4072
Daily gain/Loss
Remaining Balance
Variation Margin
Balance

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