Use the information in the table. Calculate the marking to market at the end of

Question

Use the information in the table.

Calculate the marking to market at the end of the business day on November 6, 2017 in the March Mexican peso futures contract. State explicitly what amount the long and short will be debited or credit in their margin accounts.

Create a graph of the long and short positions in the March Mexican peso futures contract.

1 00,000 Mexican peso: US$ per Mexican peso Lifetime Open interest Open HighLow SettleChange HlghLow Spot (close) March0.08300.0832 0.0819 0.0822 0.0828 0.0835 0.0677167,436 0.0068 November 6,2017

Explanation / Answer

The contract unit of Mexican Pesos futures contract is : 500,000 MXN

From the table we can see that the change in price is : -0.0068 USD/MXN

Therefore the amount that will be debit from the long positions account (credited to the short positions account):

500,000 MXN ×-0.0068 USD/MXN= $ 3400

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