Answer: zero.

## Explanation **Key concept**: After daily margin settlement, the value of a futures contract is **always zero**. **Why?** 1. **Mark-to-market mechanism**: Futures contracts are marked to market daily 2. **Margin settlement process**: - Daily gains/losses are settled through margin accounts - After settlement, the contract is effectively "reset" to the current market price - The contract value becomes zero because any gains/losses have been realized 3. **Mathematical explanation**: - Original futures price = F₀ - Current futures price = F₁ - Gain = F₁ - F₀ - After margin settlement, this gain is in the investor's margin account - The contract now has a new entry price of F₁ - Value = F₁ - F₁ = 0 This is a fundamental characteristic of futures contracts that distinguishes them from forward contracts, which do not have daily settlement and can have non-zero values between initiation and expiration.

Author: LeetQuiz Editorial Team