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 The *payment' column contains the amounts paid to top up the deposit (negative numbers) or withdrawn (positive numbers).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 f(t, T) 150 140 145 130 140 Closing

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