Question
You sell 2 December gold futures contracts when the futures price is $405 per ounce. Each contract is on 119 ounces of gold and the
You sell 2 December gold futures contracts when the futures price is $405 per ounce. Each contract is on 119 ounces of gold and the initial margin per contract $2145. The maintenance margin per contract is $4051. During the next seven days the futures price rises slowly to $411 per ounce. What is the balance of your margin account at the end of the seven days?
a) Balance of your margin account is $8102
b) Balance of your margin account is $5718
c) Balance of your margin account is $4290
d) Balance of your margin account is $2859
please show workings
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