Problem: Complete the following table for this Short Position on a Treasury bond futures contract. [Note: short position]:
Daily Settlement
Assume that on Monday, August 11, you sell on Chicago Board of Trade September Treasury bond futures contract at the opening price of 100 27/32 (1.0084375 x $100,000 = $100,843.75). The initial margin requirement is $2,000, and the maintenance margin requirement is $1,500. You maintain your position every day through Thursday, August 14, and then deliver the contract at the opening price on Friday, August 15. The example below illustrates the daily price changes and the flows in and out of the margin account.
|
Date
|
Settlement Price
|
Settlement Price ($)
|
Mark-to-Market
|
Other Entries
|
Account Balance
|
|
8/11
|
100-16
|
$100,500.00
|
|
|
|
|
8/12
|
100-25
|
$100,781.25
|
|
|
|
|
8/13
|
102-01
|
$102,031.25
|
|
|
|
|
8/14
|
101-25
|
$101,781.25
|
|
|
|
|
8/15
|
102-13
|
$102,406.25
|
|
|
|
* Please also provide a short explanation.