Now consider a long position in the CME Euro/U.S. Dollar contract, It is written on €125,000 and quoted in $ per €. The strike price is $1.30 the maturity is 3 months. At initiation of the contract, the long posts an initial performance bond of $6,500. The maintenance performance bond is $4,000. If tomorrow the price of the spot exchange rate become $1.26/Euro. 

What is the percentage return for the long CME position?

Would an investor in receive a margin call? 

What is an offset in futures markets?

Answer rating: 100% (QA)

To calculate the percentage return for the long CME EuroUS Dollar contract we need to determine the profit or loss from the change in the spot exchang... View the full answer