1. Sarah Jones figured that gold prices are about to fall from today's price. On March 1, she shorted 10 futures contracts on December gold for F1=1,900. Each contract is for 100 ounces. Nervously, she watched the gold price rising. Sarah decided to close out her position on April 30th Futures contract for December gold was trading at F2=1940. (Points: 1+2 ) a. What type of hedge will she do to close her position? b. How much did she gain or lose when she closed her position. 2. When Sarah shorted the gold futures, margin requirement was $9.500 per contract and maintenance margin was $5,700 per contract. (Points: 2+2+2 ) a. At what price of gold, would she receive a margin call? b. How much she would have to pay for her entire position to restore her margin account if gold futures rose to $1,945 ? c. At what price of gold she could withdraw $5,000 from her margin account