Question 3 (20 marks) An investor took a short position in three November 2021 gold futures contracts on May 1, 2021. The contract size for each contract was 100 oz. The future price was US$1,210/oz. The initial margin and maintenance margin required by each contract were US$10,000 and US$7,000 respectively. On May 11, 2021, the investor decided to close the position. Given the following settle and trade prices, (1) When were margin calls issued? What was the amount of each margin call? (6 marks) (IMSE4110 - page 2 of 6) Date May 1 May 2 May 3 May 4 May 5 May 6 May 7 May 8 May 9 May 10 May 11 Trade Price Settle Price US$/oz. US$/oz. 1,210 1,300 1,350 1,375 1,400 1,350 1,300 1,211 1,121 1,130 1,125 (2) What was the investor's margin balance as of May 3, 2021 and May 7, 2021? (7 marks) (3) Suppose the initial margin and maintenance margin were not required by the future contracts. What risk would the investor face on May 11, 2021? Please quantify it. (7 marks)