An investor has entered into a forward contract of gold. He has taken a long position....
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An investor has entered into a forward contract of gold. He has taken a long position. Each contract has 100 ounces. He entered the position at 875.6 dollars per ounce. The initial margin requirement was 3,000 dollars and the maintenance margin is 2,000 dollars. The futures price climbs to $887.4 next day. What is the variance margin needed for the position? An investor has entered into a forward contract of gold. He has taken a long position. Each contract has 100 ounces. He entered the position at 875.6 dollars per ounce. The initial margin requirement was 3,000 dollars and the maintenance margin is 2,000 dollars. The futures price climbs to $887.4 next day. What is the variance margin needed for the position?
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