Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 08, 2024

One futures contract on gold is equal to 100 ounces of gold. On November 30th, 2021, the gold futures contract for January delivery closed at

One futures contract on gold is equal to 100 ounces of gold. On November 30th, 2021, the gold futures contract for January delivery closed at $1,782 per ounce. The initial margin for a gold contract is $11,000. Approximately what is the leverage an investor enjoys by trading this commodity?

Show work.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access with AI-Powered 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

Students also viewed these Finance questions

Question

2.1. Explain how genetic and epigenetic factors can contribute to the emergence of childhood disorders.

Answered: 1 week ago

Question

★★★★★

Philanthropic organizations, such as the Gates Foundation, care about the return on their investment, too. For example, if a foundation spends $7,000 for preschool education of children who are at...

Answered: 1 week ago

Question

★★★★★

On October 1, 2025, Sheridan Equipment Company sold a pecan-harvesting machine to Valco Brothers Farm, Inc. In lieu of a cash payment Valco Brothers Farm gave Arden a 2-year, $162,400,10% note (a...

Answered: 1 week ago

Question

★★★★★

can you fix this IB Macro IA so its formatted correctly and able to submit to IB. Im missing the commentary and Graphs. Here is the article for it https://www.cbsnews.com/news/imf-dims-...

Answered: 1 week ago

Question

★★★★★

an 1800 kg vehicle travelling at 60.0km/h smashes into a concrete barrier and stops in 0.420s what is the magnitude of the collision force on the vehicle

Answered: 1 week ago

Question

★★★★★

Flo's Deli is determining how to ensure that their current process of serving customers during lunch rush is adequate. Which of the following is an example of how the restaurant can monitor its...

Answered: 1 week ago

Question

★★★★★

In an agile lifecycle, who should be involved in all overlapping sprints or releases? Select an answer: everyone on the product team the product manager only You should not overlap sprints or...

Answered: 1 week ago

Question

★★★★★

According to the concept of "position/legitimate power," the CEO has the ultimate responsibility for leading the tasks of forming, implementing, and executing a strategic plan for the whole...

Answered: 1 week ago

Question

★★★★★

Which of the following considerations is legally in sufficient? Tony bought a book for $100. Ruby offers to buy it for $10. Tony bought a text book for $100. He offers to give it to Ruby if Ruby...

Answered: 1 week ago

Previous Question Next Question