4. On October 31, based on the prices in the table above, what is the traders total gain or loss on the position?

A. 33,000 B. 31,000 C. 3,300 D. -3,300 E. -31,000 F. -33,000

5. On October 31, what is the traders total margin balance, assuming they have not made any additional contributions or withdrawals?

A. -2,000 B. 2,000 C. 6,400 D. 33,000 E. 64,000

Today (October 3, 2018) a trader sells short 10 gold futures contracts for November delivery. Consider the delivery date to be 2 months away (T = 1/6). Each contract controls 100 troy ounces of gold and is quoted on the price per troy ounce. Each contract requires $3,100 initial margin and has a maintenance margin of $1,000. The spot and futures prices are given in the table below: Date: Gold Spot Price November Futures Contract Price 10/3/2018 $ 1,186 $ 1,189 10/31/2018 $ 1,155 $ 1,156