Question 3

Margin requirement is a key feature of traded derivative contracts. Suppose Gold futures for July 2016 delivery is currently trading at $1,230. The contract size is 100 ounces per contract. The initial margin is $4,950 and the maintenance margin is $4,500. It is 17/05/2016, and you go long in Gold JUL 2016 Futures at $1,230 per oz.

Complete the margin account below

Date	Futures Price ($/oz)	Gain/Loss	Cumulative Gain/Loss	Margin Account ($)	Margin Call
17/05/16	1,230			4,950
18/05/16	1,226
19/05/16	1,220
20/05/16	1,215
23/05/16	1,220
24/05/16	1,225
25/05/16	1,230
25/05/16	1,240