Answered step by step
Verified Expert Solution
Question
1 Approved Answer
On 1.11.2019 you enter into a long futures contract for 100 ounces of gold at $1,500 an ounce. Your initial margin is set at 15%
On 1.11.2019 you enter into a long futures contract for 100 ounces of gold at $1,500 an ounce. Your initial margin is set at 15% of the contract value. The settlement prices for gold on the subsequent two days are: $1550 on 2.11.2019 and $1,470 on 3.11.2019. Show the marking-to-market and the adjustment in the margin account at the end of each of the two trading days. What is the total 2-day gain or loss on the position?
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