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Gold futures have an initial margin of $5,400 per contract. Each contract is on 100 ounces. If Gold is trading at $1350 per Ounce, what

  1. Gold futures have an initial margin of $5,400 per contract. Each contract is on 100 ounces. If Gold is trading at $1350 per Ounce, what is the leverage one can obtain using futures to gain exposure to gold prices?
    1. 4 to 1
    2. 18 to 1
    3. 20 to 1
    4. 25 to 1
    5. 30 to 1

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