Question: Consider a short position in the /$ futures contract specifying 62,500, quoted in 1.95, and maturing in 3 months. The initial margin requirement is $2,000
Consider a short position in the /$ futures contract specifying 62,500, quoted in 1.95, and maturing in 3 months. The initial margin requirement is $2,000 and the maintenance margin is $1,500. Fill the table below. Please show your analysis in detail. Please do not attach a file in your posts.
| Day | Opening or settle FX rate | Margin adjustment | Deposit or withdrawal | Margin account |
| Day 0 | = 1.9500 | |||
| Day 1 | = 1.9400 | |||
| Day 2 | = 1.9560 | |||
| Day 3 | = 1.9600 | |||
| Day 4 | = 1.9460 |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
