Question

A gold futures contract requires the long trader to buy 100 troy ounces of gold. The...

A gold futures contract requires the long trader to buy 100 troy ounces of gold. The initial margin requirement is $1,800, and the maintenance margin requirement is $1,200. When could a long contract holder (June futures price $320) receive a maintenance margin call?

Math   Statistics-And-Probability   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
A silver futures contract requires the seller to deliver 5,000 Troy ounces of silver. Henry sells...
A silver futures contract requires the seller to deliver 5,000 Troy ounces of silver. Henry sells four July silver futures contract at a price of $16 per ounce. The initial margin is $6,000 per contract and the maintenance margin is $2,500 per contract. What is the futures price per ounce at which Henry would receive a margin call?
A silver futures contract requires the seller to deliver 5,000 Troy ounces of silver. Henry sells...
A silver futures contract requires the seller to deliver 5,000 Troy ounces of silver. Henry sells four July silver futures contract at a price of $16 per ounce. The initial margin is $6,000 per contract and the maintenance margin is $2,500 per contract. What is the futures price per ounce at which Henry would receive a margin call?
You take a long position in one gold futures contract. The contract size is 100 ounces....
You take a long position in one gold futures contract. The contract size is 100 ounces. The initial margin requirement is $5,000. The current futures price is $1,200/ounce. At the end of the 1st day of trading, the futures price is $1,190/ounce. At the end of the 2nd day of trading, the futures price is $1,192/ounce. What is the trader's daily gain or loss on day 1? Group of answer choices
You buy 4 December gold futures contracts when the futures price is $1,801.45 per ounce. Each...
You buy 4 December gold futures contracts when the futures price is $1,801.45 per ounce. Each contract is on 100 ounces of gold and the initial margin per contract is $4,000. The maintenance margin per contract is $1,250. During the next 6 days the futures price falls slowly to $1,798.65 per ounce. What is the balance of your margin account at the end of the 6 days?
A trader plans to buy three Aug. crude oil futures contracts. Each contract is for the...
A trader plans to buy three Aug. crude oil futures contracts. Each contract is for the delivery of 1,000 barrels of crude oil. The current futures price is $50 per barrel, the initial margin is $8,000 per contract, and the maintenance margin is $6,000 per contract. (a) What price change would lead to a margin call? (F=$?) (b) Under what circumstances could $4,500 be withdrawn from the margin account? (F=$?) Please give me the process, thank you!
The contract size for platinum futures is 50 troy ounces. Suppose you need 400 troy ounces...
The contract size for platinum futures is 50 troy ounces. Suppose you need 400 troy ounces of platinum and the current futures price is $1,335 per ounce. How many contracts do you need to purchase? How much will you pay for your platinum? What is your dollar profit if platinum sells for $1,375 a troy ounce when the futures contract expires? What if the price is $1,280 at expiration?
A company enters into a long futures contract to buy 5,000 bushels of wheat for 250...
A company enters into a long futures contract to buy 5,000 bushels of wheat for 250 cents per bushel. The initial margin is $3,000 and the maintenance margin is $2,000. What price change would lead to a margin call? Under what circumstances could $1,500 be withdrawn from the margin account?
Question 1 i) A trader enters into an Australian Dollar futures contract to buy $A150,000 at...
Question 1 i) A trader enters into an Australian Dollar futures contract to buy $A150,000 at a price of US$.8060 per Australian dollar. The initial margin on this contract is US$6,000 and the maintenance margin is $3,100. At what futures price will the maintenance margin level be reached? ii) Suppose that on Feb 10, 2018 you bought an ASX S&P 200 Share Price Index (SPI) futures contract at an index level of 3999. Four weeks later you closed out this...
Suppose that an investor enters into a futures contract to buy silver for $16.80 per ounce....
Suppose that an investor enters into a futures contract to buy silver for $16.80 per ounce. The size of the contract is 5,000 ounces. The initial margin is $3,000, and the maintenance margin is $1,000. Regarding a futures price that the investor will receive a margin call and the additional amount of money that the investor needs to deposit, which of the following statements is the most accurate? Select one: a. A futures price of $16.40; the additional amount of...
The contract size for platinum futures is 50 troy ounces. Suppose you need 350 troy ounces...
The contract size for platinum futures is 50 troy ounces. Suppose you need 350 troy ounces of platinum and the current futures price is $1,035 per ounce. How many contracts do you need to purchase? How much will you pay for your platinum? What is your dollar profit if platinum sells for $1,065 a troy ounce when the futures contract expires? What if the price is $980 at expiration? (A negative value should be indicated by a minus sign. Do...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT