### What is the balance in your margin account

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Question text

Suppose that on Monday, 7 July, you assume a long position in one December British pound futures contract at the futures price of \$1.10/£. The initial margin is \$2,000, and the maintenance margin is \$1,500. The contract size is £125,000. Assume you do not withdraw excess money from your margin balance. All margin requirements are met with cash. The settlement prices for Monday and the next two days are shown in the following:

Monday: \$1.10

Tuesday: \$1.07

Wednesday: \$1.09

What is the balance in your margin account at the end of Wednesday?

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