The futures price of gold is 1 000 Futures contracts are
The futures price of gold is $1,000. Futures contracts are for 100 ounces of gold, and the margin requirement is $5,000 a contract. The maintenance market requirement is $1,500. You expect the price of gold to rise and enter into a contract to buy gold.
a. How much must you initially remit?
b. If the futures price of gold rises to $1,055, what is the profit and return on your position?
c. If the futures price of gold declines to $978, what is the loss on the position?
d. If the futures price declines to $948, what must you do?
e. If the futures price continues to decline to $932, how much do you have in your account?
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help