Question: Please help with the calculations here, please show all work and steps to solution. The current price of gold is $864 per troy ounce. Assume
Please help with the calculations here, please show all work and steps to solution.
The current price of gold is $864 per troy ounce. Assume that you initiate a long position in 10 COMEX gold futures contracts at this price on 7-July-2016. The initial margin is 7% of the initial price of the futures, and the maintenance margin is 5% of the initial price. Assume the following evolution of gold prices over the next five days, and compute the margin account assuming that you meet all margin calls.
| Date Price per Ounce | |
|---|---|
| 7-Jul-16 | $864 |
| 8-Jul-16 | $860 |
| 9-Jul-16 | $858 |
| 10-Jul-16 | $852 |
| 11-Jul-16 | $842 |
| 12-Jul-16 | $840 |
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
