The future price of Gold for August 2022 delivery is $1,920. Future contracts are for 100 ounce of gold and assume that the margin requirement is $6,000 per contract and the maintenance margin requirement is 4,000. You expect the price of gold to rise, and you buy one August Gold contract at a price of $1,920.
 
a. How much you need to have in your account to buy one future contract?
b. Assume you buy one August gold contract at $1,920, and gold price goes up and you sell your August future contract at a price of 2,050. Estimate your Dollar return and percentage return.
c. If gold price goes down and you sell your future contract at $1680, what is your percentage loss?

Answer rating: 100% (QA)

Lets calculate the required amounts and returns based on the given information a To buy one futures ... View the full answer