DIFC OIL CONTRACTS Assume that you are a customer who opened an account with a brokerage firm. Assume today is the 15th May 2010, and you placed orders to buy 25 June Oil Futures Contracts at the...

Extracted text: DIFC OIL CONTRACTS Assume that you are a customer who opened an account with a brokerage firm. Assume today is the 15th May 2010, and you placed orders to buy 25 June Oil Futures Contracts at the newly opened DIFC Futures Exchange in Dubai which does all deals in USD. Assume each contract is equal to 1000 barrels of Dubai Crude Oil. Initial Margin per contract is $3500 and maintenance margin is $3200. Your broker purchased each June Futures contract at a price of $42 on the 15th May. DIFC follows a marking to market process with daily settlement and cumulative balance Settlement Prices 15th May 42.5 16th May 43 17th May 41 18th May 44.5 19th May 46 20th May 45 What is your account balance on 18th May If you do an offset on the 20th May, calculate your gain or loss.