Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 21 AA buys two (2) gold futures Dec contracts on Jan 1, 2020. One (1) futures contract is equal to 100 ounces and costs

image text in transcribed
Question 21 AA buys two (2) gold futures Dec contracts on Jan 1, 2020. One (1) futures contract is equal to 100 ounces and costs $1,500 per ounce. Initial margin is $10,000 per contract and maintenance margin must not fall below 75% of the value of the initial margin. Required Given the market price fluctuations, complete the table below with the relevant calculations. You should copy (Ctrl-c) and paste (Ctrl-v) the table into the answer area and complete with the necessary information. Date Trade Price ($) $1,500 Settle Daily Gain Cumulative Gain Price (s) (Loss) (S) (Loss) $ Margin Balance (5) $20,000 Margin Call (5) 1,491 1,488 1st Jan 2nd Jan 3rd Jan 4th Jan sth Jan 6th Jan 7th Jan 1,495 1,485 1,479 1,484

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Finance For Food Towards New Agricultural And Rural Finance

Authors: Doris Köhn

1st Edition

3662568659, 978-3662568651

More Books

Students also viewed these Finance questions