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An investor takes a long position in one gold futures contract at $455 per ounce on 4 June. The contract size is 100 ounces. The

An investor takes a long position in one gold futures contract at $455 per ounce on 4 June. The contract size is 100 ounces. The investor holds the position open until closing it out on 7 June. At the end of the first day, the closing futures price is $457 per ounce. The initial margin requirement is $500 per contract, and the maintenance margin is $350 per contract. Assume the investor withdraws $50 excess from the margin account on 4 June. There is no other withdrawal between 4-7 June. Fill in the information (i.e., daily gain/loss ($), cumulative gain/loss ($), margin balance before margin call/withdraw ($), and margin call/withdraw ($)) in the following table.

RowDayTrade Price ($)Settle Price ($)Daily Gain/Loss ($)Cumulative Gain/Loss ($)Margin Balance Before Margin Call/Withdraw ($)Margin Call/Withdraw ($)04 June455 500 14 June 457 -5025 June 452 36 June 448 47 June 453

(b) Assume the investor does not withdraw $50 excess from the margin account on 4 June. How does it affect the investors total profit and loss? How does it affect the margin call(s) (if any) on 5-7 June? Explain.

(c) If the investor trades for two more days (i.e., 8-9 June), the settle price and daily gain/loss are $432 and $800 on 9 June; what is the settle price on 8 June? What is the cumulative gain/loss on 9 June?

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