An investor enters into a long position in two April 2021 gold futures contracts. A contract is for the delivery of 100 ounces. The initial margin is $2,500 per contract and the maintenance margin is $2,000 per contract. The futures price when the investor enters the contracts is $800 per ounce.

1) What would be the margin call if the futures price of gold reaches $796 per ounce?

2) What would be the margin call if the futures price of gold reaches $790?

3) In which situation could the investor withdraw $1,250?

Answer rating: 100% (QA)

1 If the futures price of gold reaches 796 per ounce the margin call wo... View the full answer