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You are long 29 gold futures contracts, established at an initial settle price of $1,539 per ounce, where each contract represents 100 troy ounces. Your
You are long 29 gold futures contracts, established at an initial settle price of $1,539 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,528, $1,524, $1,534, and $1,544, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement. (When a loss occurs, use a negative sign to indicate the loss. The daily margin amount is the daily balance prior to any margin call for that day.) Requirement 1: Fill in the following table. Margin Account Balance $ Daily Profit/Loss(-) $ Day 1 Day 2 $ Day $ $ 3 Day 4 Requirement 2: What is the total profit or loss? Total Profit or Loss(-): $ You are long 29 gold futures contracts, established at an initial settle price of $1,539 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,528, $1,524, $1,534, and $1,544, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement. (When a loss occurs, use a negative sign to indicate the loss. The daily margin amount is the daily balance prior to any margin call for that day.) Requirement 1: Fill in the following table. Margin Account Balance $ Daily Profit/Loss(-) $ Day 1 Day 2 $ Day $ $ 3 Day 4 Requirement 2: What is the total profit or loss? Total Profit or Loss(-): $
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