Question: A hedger entered a long futures contract at an initial futures price of $67 per unit of the underlying. The contract has an initial margin

  1. A hedger entered a long futures contract at an initial futures price of $67 per unit of the underlying. The contract has an initial margin of $8 per unit of the underlying and maintenance margin of $5 per unit of the underlying. The daily settlement prices for the contract were:

End of Trading Day

Settlement Price

1

65.80

2

64.75

3

63.20

4

68.10

5

71.00

What is the ending balance in the margin account each trading day including any required deposits?

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