On Monday, an American company decides to hedge a payment of British pounds by creating a portfolio consisting of three pound futures contracts that mature on Thursday. Each contract has 60,000 pounds attached. The futures price on Monday is $1.858/BP. Assume that the initial margin and maintenance margin is $1475 and $1100 per contract, respectively. The futures prices over the next three days (Tuesday-Thursday) are as follows: $1.855, $1.850, and $1.865.
How much money will the investor need to open his margin position?
$180,000
$0
$3300
none of the above