Calculate the Value of the Contract at 4^th February and the Credit

Multiple Choice

Calculate the value of the contract at 4^th February and the credit or debit to the margin account on the 4 ^th February. Suppose that a trader buys one three-month Australian dollar forward contract on 1 February at 0.5662 (USD/AUD) . On successive days the following may happen as the settlement exchange rate changes (in accordance with the spot rate)

A) 57,500 and -880
B) 57,500 and +880
C) 57,500 and +650
D) 57,500 and -650