Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 9 1 pts Consider an investor that takes a long position in two gold futures contracts. Assume that the initial margin is $6,000 per

image text in transcribed
Question 9 1 pts Consider an investor that takes a long position in two gold futures contracts. Assume that the initial margin is $6,000 per contract. The maintenance margin is $4,500 per contract. Day Trade Price Settlement Price Daily Gain/Loss 1 1,250 1 1,241 -1,800 1,230 -2,200 2 3 4 5 1,225 -1,000 1,220 - 1,000 1,220 0 The contract is entered into on Day 1 at $1,250 and closed out on Day 5 at $1,220. What is the total amount in the investor's margin account by the end of Day5

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

Step: 3

blur-text-image

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

Corporate Finance Principles And Practice

Authors: Denzil Watson, Antony Head

5th Edition

0273725343, 978-0273725343

More Books

Students also viewed these Finance questions

Question

Describe the three major subdivisions of the Malleus Maleficarum.

Answered: 1 week ago