CAN SOMEONE HELP ME FILL IN IN TABLES FOR BOTH (A) AND (B) PLEASE
Assume that it is July 2009. Consider the following information about the CMX gold futures contract: Contract size: 100 troy ounce; Initial margin: $1,013 per contract; Maintenance margin: $750 per contract; Minimum tick size: 10 cents/troy ounce ($10/contract) There are four traders, A, B, C, and D, in the market when next year's June contract commences trading. a) Complete the open interest column of the following table. Assume that the open interest is initially zero at the beginning of trading on July 6. Date Buyer Seller Contracts Price/Ounce Open Interest B 5 B 10 A 10 July 6 A July 6 C July 6 Settlement Price July 7 D July 7 B July 7 Settlement Price July 8 B July 8 Settlement Price $294.50 $294.00 $294.00 $293.50 $293.80 $293.80 $293.70 $299.50 D A 7 b) Calculate the gains and losses for Trader A. Assume that Trader A must bring the margin back to the initial margin amount both when the margin account balance is less than the amount required by the maintenance margin and at the time of each change in position (A change in position is defined as going from a net-long position to a net-short one and vice versa). Compute the amount in Trader A's margin account at the end of each trading day by completing the following table. Show your work. Date Buy Sell Net Price Position /Ounce Contract Value Daily Gain or Loss Deposit to Margin Account Margin Account Balance $294.50 $294.00 July 6 July 6 Settlement July 7 July 7 Settlement $293.50 $293.80 July 8 $293.70 July 8 Settlement $299.50 Assume that it is July 2009. Consider the following information about the CMX gold futures contract: Contract size: 100 troy ounce; Initial margin: $1,013 per contract; Maintenance margin: $750 per contract; Minimum tick size: 10 cents/troy ounce ($10/contract) There are four traders, A, B, C, and D, in the market when next year's June contract commences trading. a) Complete the open interest column of the following table. Assume that the open interest is initially zero at the beginning of trading on July 6. Date Buyer Seller Contracts Price/Ounce Open Interest B 5 B 10 A 10 July 6 A July 6 C July 6 Settlement Price July 7 D July 7 B July 7 Settlement Price July 8 B July 8 Settlement Price $294.50 $294.00 $294.00 $293.50 $293.80 $293.80 $293.70 $299.50 D A 7 b) Calculate the gains and losses for Trader A. Assume that Trader A must bring the margin back to the initial margin amount both when the margin account balance is less than the amount required by the maintenance margin and at the time of each change in position (A change in position is defined as going from a net-long position to a net-short one and vice versa). Compute the amount in Trader A's margin account at the end of each trading day by completing the following table. Show your work. Date Buy Sell Net Price Position /Ounce Contract Value Daily Gain or Loss Deposit to Margin Account Margin Account Balance $294.50 $294.00 July 6 July 6 Settlement July 7 July 7 Settlement $293.50 $293.80 July 8 $293.70 July 8 Settlement $299.50
