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 |
please choose the correct answer
. | $1800 can be withdrawn from the account at the close of Day 3 | |
b. | You will get a margin call of $1500 at the close on Day 2 | |
c. | $2000 can be withdrawn from the account at the close of Day 3 | |
d. | $1400 can be withdrawn from the account at the close of Day 3 | |
e. | $1500 can be withdrawn from the account at the close of Day 3 | |
f. | You will get a margin call of $1800 at the close on Day 2 | |
g. | You will get a margin call of $1200 at the close on Day 2 | |
h. | You will not get a margin call at the close on Day 1 | |
i. | You will get a margin call at the close on Day 1 |
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