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c. $1400 can be withdrawn from the account at the close of Day 3
d. $1800 can be withdrawn from the account at the close of Day 3
e. $2000 can be withdrawn from the account at the close of Day 3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i. $1500 can be withdrawn from the account at the close of Day 3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