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Question

Assuem you take a long position and purchase 3 contracts for 100 oz of gold. The current futures price is 1,200. The Exchange sets your Initial Margin at $14,000 in total and your maintenance margin at $12,000 in total. Fill out the following Margin account. Use numerical solutions only for example -25 or 25.



To close out this long position the investor must do what? 1-Write a contract to sell gold in the future 2-Write a contract to buy gold in the future

If the investor closes out her position after day 4 what is her profit/loss?

   Margin Account

Day

Trade Price

Settlement Price

Daily Gain

Cumulative Gain

Margin Account

Margin Call

1

1,200

 

 

 

14,000

 

2

 

1195

......

........

.......

.......

3

 

1190

......

........

.......

........

4

 

1189

......

.......

........

......

 

 

 

 

 

 

 

             

 

Solved
Finance 1 Month Ago
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