Question

5.  You buy a futures contract at $1.8/BP, contract size = BP 62,500; initial margin = $2,500;

       maintenance margin = $2,000.  Complete the following table

Business Date	Day           0	Day            1	Day           2
Future Price	$1.8/BP	$1.799/BP	$1.780/BP
Daily gain/loss	0
Remaining balance	-
Variation Margin	0
Balance	$2,500

Answer 1

Business Date	Day           0	Day            1	Day           2
Future Price	$1.8/BP	$1.799/BP	$1.780/BP
Daily gain/loss	0	(1.8-1.799)*62500= 62.5$ loss	(1.8-1.780)*62500= 1250$
Remaining balance	-	(2500-62.5)=2437.5	(2437.5-1250)=1187.5
Variation Margin	0	0
Balance	$2,500