Question: NEED EXPLANATION ON HOW TO GET THE CORRECT ANSWER Support ? Question 7 6.667 out of 6.667 points Use the following information to answer the

NEED EXPLANATION ON HOW TO GET THE CORRECT ANSWER Support ?

NEED EXPLANATION ON HOW TO GET THE CORRECT ANSWER

Support ? Question 7 6.667 out of 6.667 points Use the following information to answer the next 3 questions After reading several reports, an investment banker believes that the dollar will depreciate relative to the euro over the next few days. The banker decides to use five euro futures contracts to trade based on his belief. Each contract has 100.000 euros attached. The initial and maintenance margin is 15000 and 10000 per contract, respectively. The futures price on the day the banker opened his position (Tuesday) was $1.625. The futures price on Wednesday is $1.605. Find the investor's ending margin balance on Wednesday. (Assume any deficits are eliminated to keep the account open and any excess funds remain in the account) Selected Answer: 65000 Answers: 8000 65000 85000 75000 Question 8 6.667 out of 6.667 points The futures price on Thursday is $1.55. Find the investor's ending margin balance on Thursday. (Assume any deficits are eliminated to keep the account open and any excess funds remain in the account) Selected Answer: 75,000 Answers: 37,500 75,000 112,500 57,500 Question 9 6.667 out of 6.667 points The futures price on Friday is $1.60. Find the investor's ending margin balance on Friday. (Assume any deficits are eliminated to keep the account open and any excess funds remain in the account) Selected Answer: 100,000 Answers: 62,500 87,500 100,000 75,000

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