A long futures contract for 100 ounces in gold is opened at the end of trading...
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A long futures contract for 100 ounces in gold is opened at the end of trading on December 5, 2006. The contract is for June 2007 delivery. The following table gives the futures price on successive days. Date June 07 Closing Futures Price 12/5 660.30 12/6 12/7 648.20 649.20 The margin required is $3375 and the maintenance margin is $2500. If the margin balance drops below the maintenance margin, a margin call is made requiring the investor deposit enough to bring the margin account balance to the initial margin. Assuming there is no interest on the margin account, fill out the following table: Contract Date Value Profit Daily if sold Change 12/5 12/6 12/7 Margin Balance Margin Margin New Margin Before Deposit Call? Deposit Amount A long futures contract for 100 ounces in gold is opened at the end of trading on December 5, 2006. The contract is for June 2007 delivery. The following table gives the futures price on successive days. Date June 07 Closing Futures Price 12/5 660.30 12/6 12/7 648.20 649.20 The margin required is $3375 and the maintenance margin is $2500. If the margin balance drops below the maintenance margin, a margin call is made requiring the investor deposit enough to bring the margin account balance to the initial margin. Assuming there is no interest on the margin account, fill out the following table: Contract Date Value Profit Daily if sold Change 12/5 12/6 12/7 Margin Balance Margin Margin New Margin Before Deposit Call? Deposit Amount
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