You are long 10 gold futures contracts, established at an initial settle price of $785 per ounce,
Question:
You are long 10 gold futures contracts, established at an initial settle price of $785 per ounce, where each contract represents 100 ounces. Your initial margin to establish the position is $2,025 per contract, and the maintenance margin is $1,700 per contract. Over the subsequent four trading days, gold settles at $779, $776, $781, and $787, 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.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Related Book For
Fundamentals of Investments Valuation and Management
ISBN: 978-0077283292
5th edition
Authors: Bradford D. Jordan, Thomas W. Miller
Question Posted: