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Marking to Market a Euro FX Future

Go to http://www.cmegroup.com/trading/fx/ (Links to an external site.). Assume that today’s settlement price
on a CME EUR futures contract is the open price. Your performance bond account currently has a balance of
$1700. The next three days settlement prices are +1%, +2% and -2% from today’s open price. Calculate the
changes in the Performance bond account from daily marking to market and the balance of the performance
bond account after the third day. Provide calculations where necessary to support your answer.

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