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Contract Size 100 ounces Initial margin requirement $6,100 Maintenance margin requirement $5500 Opening price $1,200 per ounce Initial contract value $1,200 per ounce In January
Contract Size | 100 ounces |
Initial margin requirement | $6,100 |
Maintenance margin requirement | $5500 |
Opening price | $1,200 per ounce |
Initial contract value | $1,200 per ounce |
In January 1, a trader buys 3 diamond futures contract for June delivery. The June contract rises to $1,220 per ounce in three months.
Required.
Determine the Current profit or loss and the status of the margin accounts for
- The buyer
- The seller
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