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Margin accounts You have entered into five short gold futures contracts, each for 100 oz. of gold. When you entered the contracts, the futures price
Margin accounts You have entered into five short gold futures contracts, each for 100 oz. of gold. When you entered the contracts, the futures price was $401.30 per oz (ie. $40 130 per contract). You are required to post an initial margin of $2000 per contract, and are told that you have a maintenance margin of $1500. Over the next five days, the futures price is: We will assume that if you face any margin calls, you meet them. On each of the five days, what is your profit/loss? What is the level of your margin account? How much of a margin call will you face? At the end of the five days, how much money could you withdraw from your margin account if you wished
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