Question

1. You sell a futures contract for 2,500,000 Russian Rubles at $0.01236/RUB. The initial performance bond is $3,100 and the maintenance margin is $2,100. Fill in the table below. Remember, you may have to deposit additional funds in the account.

		Perf. Bond
Mon. morn.	0.01236	$3,100.00
Mon. close	0.01237		Gain/(loss) for the day, plus any additional funds that need to be deposited into the account
			Ending balance for the day
Tues. close	0.01238		Gain/(loss) for the day, plus any additional funds that need to be deposited into the account
			Ending balance for the day
Wed. close	0.01259		Gain/(loss) for the day, plus any additional funds that need to be deposited into the account
			Ending balance for the day
Thur. close	0.01279		Gain/(loss) for the day, plus any additional funds that need to be deposited into the account
			Ending balance for the day
Fri. close	0.01269		Gain/(loss) for the day, plus any additional funds that need to be deposited into the account
			Ending balance for the day

Answer 1

Day	Price	Gain/(Loss)	Balance	Margin Required	Balance after margin call
Mon Mor	0.01236	0	3100.0	0	3100.0
Mon Close	0.01237	(25.00000)	3075.0	0	3075.0
Tue Close	0.01238	(25.00000)	3050.0	0	3050.0
Wed Close	0.01259	(525.00000)	2525.0	0	2525.0
thu close	0.01279	(500.00000)	2025.0	1075.0	3100.0
Fri close	0.01269	250.00000	3350.0	0	3350.0

Gain/(Loss)= (Opening price- closing price)*2500000

If margin fall below 2100 then margin i.e. difference betwwen initial marfin and balance will be called.