2. You are day-trading the S&P E-Mini contract with $3,250.00 of equity in your account. Contract specs are as follows: TIC SIZE CONTRACT MOS. CONTRACT UNIT $50 x S&P 500 INDEX QUOTE UNITS US$ AND CENTS/TIC 0.25 INDEX PTS = $12.50 INITIAL MARGIN $907.50/ CONTRACT (DAY-TRADE) MAINT MARGIN $825/ CONTRACT (DAY- TRADE) Mar, Jun, Sep, Dec Based on your new sophisticated algorithm, there is an 85% chance that the S&P will fall over the next half hour, so you go all in by selling 6 June contracts. The market rises 5 tics, and then plunges 50 tics when you flatten your position (buy to close them all). What was your gross profit or loss for the day? After the trade in Problem 2, you decide to buy October gold futures. Contract specs are as follows: TIC SIZE CONTRACT MOS. CONTRACT UNIT 1000 TROY OUNCES QUOTE UNITS US$ AND CENTS/Troz INITIAL MARGIN $6,250/ CONTRACT MAINT MARGIN $5,000/ CONTRACT 0.10/TroZ = 3 NEAREST MOS. + $10.00 Feb, Apr, Aug, Oct 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? 2. You are day-trading the S&P E-Mini contract with $3,250.00 of equity in your account. Contract specs are as follows: TIC SIZE CONTRACT MOS. CONTRACT UNIT $50 x S&P 500 INDEX QUOTE UNITS US$ AND CENTS/TIC 0.25 INDEX PTS = $12.50 INITIAL MARGIN $907.50/ CONTRACT (DAY-TRADE) MAINT MARGIN $825/ CONTRACT (DAY- TRADE) Mar, Jun, Sep, Dec Based on your new sophisticated algorithm, there is an 85% chance that the S&P will fall over the next half hour, so you go all in by selling 6 June contracts. The market rises 5 tics, and then plunges 50 tics when you flatten your position (buy to close them all). What was your gross profit or loss for the day? After the trade in Problem 2, you decide to buy October gold futures. Contract specs are as follows: TIC SIZE CONTRACT MOS. CONTRACT UNIT 1000 TROY OUNCES QUOTE UNITS US$ AND CENTS/Troz INITIAL MARGIN $6,250/ CONTRACT MAINT MARGIN $5,000/ CONTRACT 0.10/TroZ = 3 NEAREST MOS. + $10.00 Feb, Apr, Aug, Oct 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