Question: 7. Suppose that the initial margin is set at 10% and the maintenance margin at 5% of the future price. Please complete the table below.

 7. Suppose that the initial margin is set at 10% and

7. Suppose that the initial margin is set at 10% and the maintenance margin at 5% of the future price. Please complete the table below. The columns labelled 'margin l' and 'margin 2 show the deposit at the beginning and at the end of each day, respectively. The payment' column contains the amounts paid to top up the deposit (negative numbers) or withdrawn (positive numbers). t-days Cash flow Margin 1 payment Margin 2 Opening: 0 -15 15 0 1 2 3 4 Future price ft, T) 150 140 145 130 140 Closing

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