Consider a futures contract in which the current futures price is Rs 414. The initial margin requirement is Rs 20 per contract, and the maintenance margin requirement is Rs 15 per contract. You go…

Consider a futures contract in which the current futures price is Rs 414. The initial margin requirement is Rs 20 per contract, and the maintenance margin requirement is Rs 15 per contract. You go long 10 contracts and meet all margin calls but do not withdraw any excess margin. Assume that on the first day, the contract is established at the settlement price, so there is no mark-to-market gain or loss on that day. Calculate the daily gain or loss, cumulative gain or loss, margin balance and margin call if futures prices are 416, 422, 418, 415 and 408 from day 1 to day 5 respectively. Determine the price level that would trigger a margin call. If investor does not deposit margin call amount, what will happen?