On November 6^th you shorted 1 December Gold futures contract at $1400 per troy ounce. Each contract is for 100 ounces of gold. The daily settlement prices for the contract are provided in the table. Initial margin is $50,000 per contract and maintenance margin is $40,000 per contract.

a)By marking to market, provide the margin balance each day until you close the position on December 10th.

(Paste the table from Excel here)

b)Calculate the overall theoretical profit/loss on the trade by looking at the change in the futures price (and quantity) only and the overall actual profit/loss by looking at the cashflow of the margin account and mark-to-market (all in dollars). Are they the same - they should be. (Assume that no interest is earned on the margin account).

P&L Calc from change in Futures Price

Total P&L from Marking to Market