compute the contract value, intitial margin and maintenance margin

assume the Question started IM 10% from the contract value

QUESTION 1 (20 MARKS) A speculator believes that the CPO price at the BMSB (Bursa Malaysia Securities Berhad) will be at a downward direction in the near future. You refer to your broker to manage for 750 tonnes of physical CPO and speculate in CPO futures contracts at a price of RM3,700. Based on the information given below and assuming that you are required to pay initial margin of RM3,200 per contract and maintain 85% of your initial margin. Following are the data from the Bursa Malaysia Derivatives Berhad (BMDB). Trading date 6th May 7th May 8th May 9th May 10th May Required: Settlement Price 3711 3722 3689 3711 3634 QUESTION 1 (20 MARKS) A speculator believes that the CPO price at the BMSB (Bursa Malaysia Securities Berhad) will be at a downward direction in the near future. You refer to your broker to manage for 750 tonnes of physical CPO and speculate in CPO futures contracts at a price of RM3,700. Based on the information given below and assuming that you are required to pay initial margin of RM3,200 per contract and maintain 85% of your initial margin. Following are the data from the Bursa Malaysia Derivatives Berhad (BMDB). Trading date 6th May 7th May 8th May 9th May 10th May Required: Settlement Price 3711 3722 3689 3711 3634