Q2 You enter 20 short gold futures contracts at the end of day 1 (at the...
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Q2 You enter 20 short gold futures contracts at the end of day 1 (at the settlement price for that day). You close out your position at the end of day 4 by entering 20 long futures contracts at the settlement price for that day. Determine the daily mark-to-market gains (losses), margin balance, and margin calls (if any) for your position based on the below hypothetical futures prices. Each contract represents 100 ounces, and suppose the per-contract margins (whether long or short) are $4,400 initial and $4,000 maintenance. Day Future Mark-to-Market Settlement Gain/Loss Margin Account Balance Margin Call Margin Account Balance Price (Before Margin Call) 1 $1,003 0 ? 0 ? 2 1,013 ? ? ? ? 3 1,025 ? ? ? ? 4 1,020 ? ? ? ? Q2 You enter 20 short gold futures contracts at the end of day 1 (at the settlement price for that day). You close out your position at the end of day 4 by entering 20 long futures contracts at the settlement price for that day. Determine the daily mark-to-market gains (losses), margin balance, and margin calls (if any) for your position based on the below hypothetical futures prices. Each contract represents 100 ounces, and suppose the per-contract margins (whether long or short) are $4,400 initial and $4,000 maintenance. Day Future Mark-to-Market Settlement Gain/Loss Margin Account Balance Margin Call Margin Account Balance Price (Before Margin Call) 1 $1,003 0 ? 0 ? 2 1,013 ? ? ? ? 3 1,025 ? ? ? ? 4 1,020 ? ? ? ?
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Related Book For
Introduction To Corporate Finance
ISBN: 9781118300763
3rd Edition
Authors: Laurence Booth, Sean Cleary
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