Consider the following sequence of prices for a currency


Consider the following sequence of prices for a currency futures contract. Each contact involves 10,000 units of the foreign currency. The initial and maintenance margin requirements are USD 800 and USD 500, respectively. Assume that the position was entered at a price of 1.62 and that the futures contract is held to expiration, which is in day 6

         Day         Futures             Price

1          1.65

2          1.66

3          1.64

4          1.63

5          1.61

6          1.60

Calculate the profit/loss for the short.

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Financial Management: Consider the following sequence of prices for a currency
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