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The futures price of gold is $800. Futures contracts are for 100 ounces of gold, and the margin requirement is $4,000 a contract. The maintenance
The futures price of gold is $800. Futures contracts are for 100 ounces of gold, and the margin requirement is $4,000 a contract. The maintenance market requirement is $800. You expect the price of gold to rise and enter into a contract to buy gold. a. How much must you initially remit? Round your answer to the nearest dollar. $ b. If the futures price of gold rises to $845, what is the profit and return on your position? Round your answer for profit to the nearest dollar and for return to the nearest whole number. Profit: $ Return: % c. If the futures price of gold declines to $784, what is the loss on the position? Round your answer to the nearest dollar. Enter the answer as a positive value. $ d. If the futures price declines to $756, what must you do? Round your answer to the nearest dollar. Enter the answer as a positive value. The investor will have to -Select- $ to restore the initial $4,000 margin. e. If the futures price continues to decline to $746, how much do you have in your account? Round your answer to the nearest dollar. $
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