2. What happens to the amount of money in your margin account? How much does it change by? 3. You notice thst thr one day futures price is $2000, but thr spot price is $1480. What should you do?

Futures, Margin, and Arbitrage You want to go long in gold futures that mature at the end of the semester (May 2020). The current future price for gold at that maturity date is $1,494.70 per 100 fine troy ounces. The exchange requires an initial margin of 5% of the notional value (futures price x # contracts) of the contracts. You have $1,000 in cash to put into your margin account. 1. How many futures contracts can you obtain? 2. Suppose the future price of gold decreases by $1 in a single day while you hold these futures. What happens to the amount of money in your margin account? How much does it change by? 3. You notice that the one day futures price is $2,000, but the spot price is $1,480. What should you do