Today's Settlement Price on a Chicago Mercantile Exchange (CME)yen Futures

question 31

Multiple Choice

Today's settlement price on a Chicago Mercantile Exchange (CME) yen futures contract is $0.8011/¥100.Your margin account currently has a balance of $2,000.The next three days' settlement prices are $0.8057/¥100,$0.7996/¥100,and $0.7985/¥100.(The contractual size of one CME yen contract is ¥12,500,000) .If you have a short position in one futures contract,the changes in the margin account from daily marking-to-market will result in the balance of the margin account after the third day to be

• A)$1,425.
• B)$2,000.
• C)$2,325.
• D)$3,425.

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Definitions:

Reciprocal Concessions

A negotiation strategy where each party makes adjustments to their demands to reach a mutual agreement.

Social Conformity

Adjusting one's behaviors or opinions to align with those of a group or societal expectations.

Social Facilitation

The enhancement of a person's performance on simple or well-learned tasks in the presence of others.

Revenge

The act of inflicting harm or punishment on someone in retaliation for harm they have caused; motivated by a desire for justice or vengeance.