After the trade in Problem 2, you decide to buy October gold futures. Contract specs are...
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After the trade in Problem 2, you decide to buy October gold futures. Contract specs are as follows: CONTRACT UNIT 100 TROY OUNCES QUOTE UNITS US$ AND CENTS/TROZ TIC SIZE CONTRACT MOS. 0.10/TrOZ = 3 NEAREST MOS. + $10.00 Feb, Apr, Aug, Oct INITIAL MAINT MARGIN MARGIN $6,250/ $5,000/ CONTRACT CONTRACT a. How many contracts can you (safely) buy? b. If gold then declines $3.65 per troy ounce, what is the market-to-market equity in the account? After the trade in Problem 2, you decide to buy October gold futures. Contract specs are as follows: CONTRACT UNIT 100 TROY OUNCES QUOTE UNITS US$ AND CENTS/TROZ TIC SIZE CONTRACT MOS. 0.10/TrOZ = 3 NEAREST MOS. + $10.00 Feb, Apr, Aug, Oct INITIAL MAINT MARGIN MARGIN $6,250/ $5,000/ CONTRACT CONTRACT a. How many contracts can you (safely) buy? b. If gold then declines $3.65 per troy ounce, what is the market-to-market equity in the account?
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a You can buy 50 contracts 50006250 08 contracts 3 nearest months 1 4 08 contracts x 4 32 contracts ... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
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