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On January 1, you enter a long gold futures contract at the settle price of 1250/oz....

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Finance

On January 1, you enter a long gold futures contract at thesettle price of 1250/oz. Each gold contract is for 100 ounces. Theminimum margin requirement is $5500, and the maintenance marginrequirement is $4500. Given the futures settle prices below, whatamount of margin is in your account at the market close on January4th. Assume you keep the contract active through the four days anddo not take any excess margin out of the account. January 2:1233/oz January 3: 1240/oz January 4: 1262/oz

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4.3 Ratings (951 Votes)

Day Settlement price per ounce Mark-to-Market Other Entries Account Balance Explanation for other entries
1 $                 1,250.00 $       1,25,000 $         5,500 $             5,500 Initial Margin Deposit
2 $                 1,233.00 $       1,23,300 $            700 $             4,500 Margin call
3 $                 1,240.00 $       1,24,000 $             5,200
4 $                 1,262.00 $       1,26,200 $             7,400
Margin in the account at close on January 4 $             7,400

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Transcribed Image Text

On January 1, you enter a long gold futures contract at thesettle price of 1250/oz. Each gold contract is for 100 ounces. Theminimum margin requirement is $5500, and the maintenance marginrequirement is $4500. Given the futures settle prices below, whatamount of margin is in your account at the market close on January4th. Assume you keep the contract active through the four days anddo not take any excess margin out of the account. January 2:1233/oz January 3: 1240/oz January 4: 1262/oz

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