Assume that you enter into a long futures contract on gold when the futures price is $1,767 per ounce. The size of the contract is 2,000 ounces. The initial margin is $10,000 and the maintenance margin is $7,500. 

a) What change in the futures price will lead to a margin call?

b) What price change will allow you to withdraw $3,000 from the margin account?

Answer rating: 100% (QA)

a To determine the change in the futures price that will lead to a margin call we need to calculate ... View the full answer