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You are long 30 gold futures contracts, established at an initial settle price of $1,542 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,531, $1,527, $1,537, and $1,547, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement. For days in which a deposit is necessary, give the margin balance after the required deposit

1 Answer

2 votes

Answer:

The solutions is given in the attached figure

Step-by-step explanation:

The values are calculated using the appropriate formulas in Excel. The formulas are as indicated in the attached figure.

You are long 30 gold futures contracts, established at an initial settle price of-example-1
You are long 30 gold futures contracts, established at an initial settle price of-example-2
answered
User Lucas Vazquez
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