Question
An investor takes a long position in 2 November gold futures contracts on July 10. The contract size is 100 oz. The current gold futures
An investor takes a long position in 2 November gold futures contracts on July 10. The contract size is 100 oz. The current gold futures price is US$1900. The initial margin requirement is US$5,000 per contract and maintenance margin is US$4,500/contract.
The following table shows the futures price at the close of the following dates:
Day
Date
Price
1
10-Jul
1896.00
2
11-Jul
1894.00
3
12-Jul
1901.00
4
13-Jul
1903.00
Choose all correct answers. Please note that each incorrect answer will reduce the score by 10%.
a.$1800can be withdrawn from theaccount at theclose of Day 3
b.You willget a margin call of $1500at the close on Day2
c.$2000can be withdrawn from theaccount at theclose of Day 3
d.$1400 can be withdrawn from the account at the close of Day 3
e.$1500can be withdrawn from theaccount at theclose of Day 3
f.You willget a margin call of $1800at the close on Day2
g.You will get a margin call of $1200at the close on Day2
h.You will notget a margin call at the close on Day 1
i.You willget a margin call at the close on Day1
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