Question: QUESTION 4 A short position in three coffee future contract (30,000 kg for delivery in April 2021) is opened on Dec 16, 2020. On

QUESTION 4 A short position in three coffee future contract (30,000 kg for delivery in April 2021) is opened on Dec 16, 2020. On Dec 16, 2020 the futures price of coffee is F = NS5.8/kg. The daily settlement of the contract is shown below: Deposit initial margin, NS 200,000 [maintenance margin: $100,00). Show all your calculations. Dec 16-NS6.2 Dec 17=NS 7.20 Dec 18-N$8.3 Dec 19-NS5.6 Dec 20=N$4.5 Dec 21=N$8.77 Dec 22-N$10.2 Dec 23=N$8.36 Dec 24=NS11.5 Total Marks of Q4: 20

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