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The current price of gold is $1642 per troy ounce. Assume that you initiate a long position in 10 COMEX gold futures contracts at this
The current price of gold is $1642 per troy ounce. Assume that you initiate a long position in 10 COMEX gold futures contracts at this price on September 6th. This initial margin is 5% of the initial price of the futures, and the maintenance margin is 3% of the initial price. Assume the evolution of gold futures prices over the next four days and that you meet any margin calls. The gold futures contract size is 100 ounces. For each day, please compute your end of day margin balance.
The current price of gold is $1642 per troy ounce. Assume that you initiate a long position in 10 COMEX gold futures contracts at this price on September 6th. This initial margin is 5% of the initial price of the futures, and the maintenance margin is 3% of the initial price. Assume the evolution of gold futures prices over the next four days and that you meet any margin calls. The gold futures contract size is 100 ounces. For each day, please compute your end of day margin balance. Date September 6 September 7 September 82 September 9 September 10 Daily Settlement Price per Ounce 1642 16202 16052 16182 15902Step by Step Solution
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