You took a short futures position in 10 contracts, covering each 100 ounces of gold at...

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You took a short futures position in 10 contracts, covering each100 ounces of gold at a price of $276.5 per ounce. The initial andthe maintenance margin requirement are respectively $1500 and is$1100 per contract. No withdrawal in any excess margin will bemade. Ignore any interest on the balance.
(b) The settlement prices per ounce of gold at the end of days1, 2 and 3 are respectively $278, $281 and $276. Complete the tablebelow assuming the contract is purchased at the settlement price ofthat day. [20]
Day
Beggining Balance
Funds Deposited
Futures Prices
Price Change
Gain/Loss
Ending Balance
0
1
2
3

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3.7 Ratings (577 Votes)

Day	Opening Balance	Funds Deposited	Future Prices	Price Change	Gain/Loss	Closing Balance
0	-	(10100276.5)+ (10*1500) = 2,91,500.0	276.5			2,91,500.0
1	2,91,500.0	-	278.0	-1.5	-1,500.0	2,90,000.0
2	2,90,000.0	-	281.0	-3.0	-3,000.0	2,87,000.0
3	2,87,000.0	-	276.0	5.0	5,000.0	2,92,000.0

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Beggining Balance

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Futures Prices

Price Change

Ending Balance

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You took a short futures position in 10 contracts, covering each100 ounces of gold at a price of $276.5 per ounce. The initial andthe maintenance margin requirement are respectively $1500 and is$1100 per contract. No withdrawal in any excess margin will bemade. Ignore any interest on the balance.(b) The settlement prices per ounce of gold at the end of days1, 2 and 3 are respectively $278, $281 and $276. Complete the tablebelow assuming the contract is purchased at the settlement price ofthat day. [20]DayBeggining BalanceFunds DepositedFutures PricesPrice ChangeGain/LossEnding Balance0123