Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You are long 2 9 gold futures contracts, established at an initial settle price of $ 1 , 5 3 9 per ounce, where each

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. For days
in which a deposit is necessary, give the margin balance after the required deposit.
Note: Leave no cells blank - be certain to enter "0" wherever required. Input all amounts as positive values. The daily margin
amount is the daily balance prior to any margin call for that day.
Total
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Handbook Of Financial Instruments

Authors: Frank J. Fabozzi

1st Edition

0471220922, 978-0471220923

More Books

Students also viewed these Finance questions

Question

What is your communication style when working with others?

Answered: 1 week ago