Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Need quick please! Margin trading on commodity futures. An investor has a long position in 7 gold contract(s). Each contract controls 100 troy ounces. The
Need quick please!
Margin trading on commodity futures. An investor has a long position in 7 gold contract(s). Each contract controls 100 troy ounces. The investor entered the position at $981.4. Assume that the initial margin per contract is $2,500, the maintenance margin is $2,000, and the futures price drops to $1,079.5 at the end of the first day and $1,187,5 on the end of the second day. a. What is the the profit/loss at the end of the first day? s Rouns your answer to the nearest cent b. Is there a margin call at the end of the first day? No Yes c. What should be the margin account balance at the end of the first day if trading is to continue? Round your answer to the nearest cent. d. What is the the profit/loss at the end of the second day? Round your answer to the nearest cent e. Is there a margin call at the end of the second day? No Yes Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started