Mary decides to buy a Treasury note futures contract for delivery of $100,000 face amount in September, at a price of 120'15.5. At the same time, Eric decides to sell a Treasury note futures contract if he can get a price of 120'15.5 or higher. The exchange, in turn, agrees to sell one Treasury note contract to Mary at 120′15.5 and to buy one contract from Eric at 120′15.5. If the price of the Treasury note decreases to 120′12.5. Calculate Eric's balance on margin account. Assume that initial margin is $1,890. Round the answer to two decimal places. Your Answer:
