Homework Answers
Part 4.
Value of Total Contract = 1239 * 100
= 123900
Initial Margin to be deposited = 30% of 123900
= 37170
Part 5.
Since the future price increased no additional Margin has to be deposited. So, at the end it will still remain 37170.
Part 6.
Additional Margin = (1239 -1235) * 100 * 30%
= 120
Margin at the end of Day 2 = 37290
Part 7.
Additional Margin = (1235 - 1231) * 100 * 30%
= 120
Margin at the end of Day 3 = 37410
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