Futures price of British pounds is $ 2.00. Futures contracts are for £ 10,000, so the contract is worth $ 20,000. Margin requirement is $ 2,000 the contract, and maintenance market need is $ 1,200. The speculator expects price of pound to fall and enters into contract to sell pounds.
i) How much should speculator originally remit?
ii) If futures price increases to $ 2.13, what should speculator do?
iii) If futures price continues to increase to $ 2.14, how much speculator has in account?