We'R'Scared, a US-based MNC, will need 500,000 a year from now, and decides to lock into a rate of 2$/ (which happens to be the current spot price) and purchase a futures contract right now (assume a single contract with a size of 500,000). The initial margin on the contract is 10%, and the maintenance margin is 5%. On the first day of the contract, the pound loses $0.03 in the spot market, and drops to $1.97. It continues to lose $0.03 per day for the next 10 days. We'R'Scared will receive the first margin call at the end of day --- 10 07 4 O5 O9 O 3 O 1 O2