Assume todays settlement price on a CME Eurodollar futures contract is $1.3140/ED. You have a short position in one contract. Your performance bond account currently has a balance of $1700. The next three days settlement prices are $1.3126 $1.3133 and $1.3049.In a 3-4 page paper 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 (show your calculations). How would your results change assuming you have a long position in the futures contract? Describe three factors that might affect the financial results of a firm conducting business internationally which could ultimately impact the performance bond account.
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