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Suppose an investor contacted a broker on Monday, February 16 and placed an order to take a long position in 10 March gold futures contracts.

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Suppose an investor contacted a broker on Monday, February 16 and placed an order to take a long position in 10 March gold futures contracts. Further suppose that at the time the order was executed, the March gold futures price was 980 dollars per troy ounce. The size of each contract is 100 troy ounces. The broker required the investor to post an initial margin of $2,500 per contract. The broker also informed the investor that the maintenance margin is $1,000 per contract. Add/Withdraw Mark- To/From March Gold Futures Settlement Prices to- Margin End-of-Day Market Account Balance Date ($/troy ounce) ($) ($) ($) 2/16 open 980 Nothing needs to be entered here (1) 2/16 settle 990 2/17 settle 980 (2) (3) 2/18 settle 960 4 (4) (5) 2/19 settle 975 2/20 settle 980 (6) 0

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