J_Girl
Apr 28, 2008, 06:48 PM
You buy eight contracts of Euro currency futures (i.e. total of one million Euros) with an
initial margin of $2835 per contract. You buy the contracts at $1.3468/Euro and after a few
days of trading the contracts end at a price of $1.3534/Euro with the following ending price
each day: $1.3465, $1.3443, $1.3434 and $1.3534. What would be the margin account value
per day? [Starting value being $22,680 (i.e. 8*2835 = $22,680)].
Do I use the Ft = So(1+rf - y)^t formula where Ft = futures price for a contract lasting t periods, So = today's spot price, rf = risk-free interest rate, and y = dividend yield or interest rate formula?
initial margin of $2835 per contract. You buy the contracts at $1.3468/Euro and after a few
days of trading the contracts end at a price of $1.3534/Euro with the following ending price
each day: $1.3465, $1.3443, $1.3434 and $1.3534. What would be the margin account value
per day? [Starting value being $22,680 (i.e. 8*2835 = $22,680)].
Do I use the Ft = So(1+rf - y)^t formula where Ft = futures price for a contract lasting t periods, So = today's spot price, rf = risk-free interest rate, and y = dividend yield or interest rate formula?