Question: Application Computing Gains, Losses, and Performance Bond Calls on a Futures Contract On Monday morning, you long one CME yen futures contract containing 12,500,000 at

Application Computing Gains, Losses, and Performance Bond Calls on a Futures

Application Computing Gains, Losses, and Performance Bond Calls on a Futures Contract On Monday morning, you long one CME yen futures contract containing 12,500,000 at a price of US$0.009433. Suppose the broker requires an initial performance bond of $4,000 and a maintenance performance bond of $3,400. The settlement prices for Monday to Thursday are $0.009542, $0.009581, $0.009375, and $0.009369, respectively. On Friday, you close out the contract at a price of $0.009394. Calculate the daily cash flows on your account. Describe any performance bond calls on your account. What is your cash balance with your broker as of the close of business on Friday? Assume that you begin with an initial balance of $4,590 and that your round- trip commission was $27

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