Question: Suppose your initial margin is 3000$ and your maintenance margin is 1000$ for one future contract that required to deliver 10 ounces of gold. How

Suppose your initial margin is 3000$ and your maintenance margin is 1000$ for one future contract that required to deliver 10 ounces of gold. How much the price of the ounce needs to move so that you will get a margin call as a seller?

Step by Step Solution

3.37 Rating (156 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

To determine the price movement required for a margin call as a seller we need to calculate the pric... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!