PROBLEM 4 (35 POINTS)-LO4 You are interested in one type of financial derivative instrument, namely Futures. By using the LQ45 Index as the underlying asset, you have purchased 4 (four) LQ 45 futures contracts on the Jakarta Futures Exchange using a margin account. The amount to be deposited at the time the contract is made is known as the initial margin, determined by multiplying: 4% x Contract size x Contract amount The current LQ 45 index value is 950. Contract Size Rp. 500.000,- Maintenance margin 80% of the initial margin. Investment period: 1 month. The following data is the realization of the movement of the LQ45 index over the period of the next 1 month ahead: Verified by Citra Amanda (D6503) and sent to Department Program on Januar 15, 2022 Settlement Day Price 1 948.65 2 923.39 3 945.68 4 943.15 5 930.25 6 925.56 7 1035.29 8 929.78 9 920.25 10 918.75 11 870.26 12 915.05 13 1200.86 14 921.21 15 918.58 16 798.95 17 912.88 18 905.14 19 909.52 20 1001.98 21 1097.30 22 1008,71 23 1010.86 24 870.86 Page 2 of 3 FM-BINUS-AA-FPU-78/V280 a. Prepare a daily settlement or Mark to Market (MTM) for the period stated. Show the Margin calls and Variation margin if the balance in the Margin account falls below the Maintenance margin What is the portfolio value and return of the Mark to Market strategy? b. Compare the returns between using Margin account and non-margin account trading strategies. Explain which strategy you think is better.