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Q1. A company enters into a long futures gold contract to buy 100 ounces of gold for S1200 per ounce. The initial margin is $3000
Q1. A company enters into a long futures gold contract to buy 100 ounces of gold for S1200 per ounce. The initial margin is $3000 per contract and the maintenance margin is $2000 per contract (1) What price change would lead to a margin call? (2) What is the margin call price? (3) What circumstances could $2000 can be withdrawn from the margin account? Q2. A company enters into a short futures gold contract to sell 100 ounces of gold for $1200 per ounce. The initial margin is $3000 and the maintenance margin is $2000. (1) What price change would lead to a margin call? (2) What is the margin call price? (3) What circumstances could $2000 can be withdrawn from the margin account? Nlovober gold futures contracts
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