As a speculative trader you are interested in the performance of the KLIBOR market. The last few months you observed the market had a bearish pattern. However, today you believe that the index performance will increasing in the near future. Assuming you are required to pay initial margin of RM8000/contract and maintain 85% of it, commission is charged at RM105/contract. The table below is the settlement index prices for the following trading days: Day Today 1 2. 3 4 Implied rate 9.90 10.15 9.80 9.65 9.72 Required: a. b. c. Determine the contract value, initial margin and maintenance margin. Prepare a complete marked-to-market position based on the above information. If the trader decides to close-out his position on day 5 at 9.95, calculate his realised profit or loss. Conclude the result from the above strategy. d. As a speculative trader you are interested in the performance of the KLIBOR market. The last few months you observed the market had a bearish pattern. However, today you believe that the index performance will increasing in the near future. Assuming you are required to pay initial margin of RM8000/contract and maintain 85% of it, commission is charged at RM105/contract. The table below is the settlement index prices for the following trading days: Day Today 1 2. 3 4 Implied rate 9.90 10.15 9.80 9.65 9.72 Required: a. b. c. Determine the contract value, initial margin and maintenance margin. Prepare a complete marked-to-market position based on the above information. If the trader decides to close-out his position on day 5 at 9.95, calculate his realised profit or loss. Conclude the result from the above strategy. d