Question
Abrader sells five futures contracts on gold. The current futures price is $1600 per ounce. Each contract is for the delivery of 100 ounces. The
Abrader sells five futures contracts on gold. The current futures price is $1600 per ounce. Each contract is for the delivery of 100 ounces. The initial margin is $10,000 per contract and the maintenance margin is $7,000 per contract. What price change would lead to a margin call? Under what circumstances could $2,500 be withdrawn from the margin account?
Hint: You can withdraw funds from the margin account if the total balance is higher than the initial margin, given that the balance remains at or above the initial margin.
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
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