On AUG 12, 2022 a speculator held the following Calendar spread of 20,000 Natural Gas (NG) futures: Long JAN 2023 and Short NOV 2022. In every NG futures there are 10,000 units. Now, instead of closing this calendar spread, the speculator decided to keep it open for several more days. The settlement prices for AUG 12, 2022 were: $13.30 /unit for JAN 2023 delivery and 9.30 / unit for the NOV 2022 delivery. During the next day, AUG 13, 2022, the speculator did not trade and the settlement prices were: $14.5/ unit for JAN 2023 delivery and $11.00/unit for the NOV 2022 delivery. Calculate the total dollar change in the speculator's margin account following the marking to market on AUG 13.

The total dollar change in the speculator's margin account following the marking to market on AUG 13 is:
$24,000,000 (change in Long JAN 2023) + $34,000,000 (change in Short NOV 2022) = $58,000,000.

To calculate the total dollar change in the speculator's margin account following the marking to market on AUG 13, we need to compare the settlement prices for AUG 12 and AUG 13. On AUG 13, 2022, the speculator did not trade, and the settlement prices were $14.50 per unit for JAN 2023 delivery and $11.00 per unit for NOV 2022 delivery. To calculate the change in the speculator's margin account, we need to find the difference between the settlement prices on AUG 12 and AUG 13 for each contract in the spread.
For the Long JAN 2023 contract:
($14.50 - $13.30) x 20,000 x 10,000

= $24,000,000
For the Short NOV 2022 contract:
($11.00 - $9.30) x 20,000 x 10,000

= $34,000,000

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