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The New York Commodity Exchange (COMEX) trades futures contracts in gold. Each contract is for 100 ounces of gold. Assume that on Monday, June 3
The New York Commodity Exchange (COMEX) trades futures contracts in gold. Each contract is for 100 ounces of gold. Assume that on Monday, June 3 you buy ONE December gold futures contracts. When you make the purchase the futures price is $400 per ounce. The initial Margin is $2,000 per contract and the maintenance margin is $1.500 per contract. At the end of each trading day, your margin account is marked to market" to reflect gains and losses due to price changes over the day. Fill in the following table showing what happens to your margin account over the following few days. Day Futures Price Daily Gains Cumulative Gains Margin Margin Call (S/ounce) or (Losses) / (Losses) Account Balance $400.00 $4,000 June 3 397.00 June 4 396.10 June 5 398.20 June 6 397.10 June 7 396.70 June 10 395.40 June 11 393.30 What is the amount of the margin call on June 11? What is the amount of the margin call on June 11? Select one: a. 5670 b. $1.340 c. $1.260 O d. None of the above are true
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