Question: Please help with QUESTION 4. The answer is 6425 but I cannot work it out The following information is used for the next TWO questions.

Please help with QUESTION 4.

The answer is 6425 but I cannot work it out

Please help with QUESTION 4. The answer is 6425 but I cannot

The following information is used for the next TWO questions. Assume that you have sold two Australian dollar (AUD) futures contracts at the closing price on day t=0. Over the subsequent days, the futures price has evolved as shown in the following table. All values are the closing futures price for that day. Day Futures Price t=0 t=1 t=2 t=3 t=4 CHF1.0742/AUD CHF1.0819/AUD CHF1.0780/AUD CHF1.0745/AUD CHF1.0722/AUD Each futures contract on the Australian dollar has a size of AUD125,000, an initial margin of CHF2,000, and a maintenance margin of CHF1,300. In addition, assume that you never withdraw any excess funds from your margin account and always meet any required margin calls. Question 3 What is the profit (+) or loss (-) on your position over the period t=0 to t=4? Question 4 What is the balance on your margin account at the end of day t=4

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