The following information is available with respect to an investor Ram, trading in the future market: Ram has purchased 80 lots of index future @ 881, on day one out of which he sold 20 lots @ 878 and carried the remaini

Computation of Mark to Market (MTM) position: One lot = 125 units For Day One: Ram purchased 80 lots @ 881. He sold 20 lots @ 878. Remaining 60 lots carried forward. Closing price for Day One = 888. MTM for Future Sold (Intra-day trade): Units sold = 20 lots × 125 units/lot = 2,500 units Loss = (Purchase Price - Sale Price) × Units Loss = (881 - 878) × 2,500 = 3 × 2,500 = ₹ 7,500 (Loss) MTM for Future Carry Forward (60 lots): Units carried forward = 60 lots × 125 units/lot = 7,500 units Profit = (Closing Price - Purchase Price) × Units Profit = (888 - 881) × 7,500 = 7 × 7,500 = ₹ 52,500 (Profit) Net MTM for Day One: Net MTM = Profit on carry forward - Loss on intra-day trade Net MTM = ₹ 52,500 - ₹ 7,500 = ₹ 45,000 (Credit) For Day Two: No trade made. Closing price for Day Two = 878. Position carried from Day One = 60 lots (7,500 units) at closing price of 888. MTM for Day Two: Loss = (Previous Day Closing Price - Current Day Closing Price) × Units Loss = (888 - 878) × 7,500 = 10 × 7,500 = ₹ 75,000 (Debit) Summary: Day One MTM: ₹ 45,000 Credit Day Two MTM: ₹ 75,000 Debit