Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. on january 1, you enter a long gold futures contra

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

Free

90.2K

Verified Solution

Question

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

Answer & Explanation Solved by verified expert
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

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

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

Other questions asked by students

Q

1. Why are clades “supported” by one or more synapomorphy? We expect the synapomorphy to be...

Biology
Q

how the population changed using the terms carrying capacity equilibrium exponential growth and limiting factors...

Biology
Q

a JK and KL d LP and LK a AABD ACDB B c AYXZ AWXZ...

Geometry
Q

35 50

Geometry
Q

Are the subscriber and the patient the same person? What is the code for...

Accounting
Q

Victory Company uses weighted average process costing. The company has two production processes. Conversion cost...

Accounting
Q

Renee operates a proprietorship selling collectibles over the Web. This year, Renee's business reported revenue...

Accounting
Q

On January 1 of Year 1, Bryson Company obtained a $150,000,4 year, 9% instalment note...

Accounting
Q

Highland Company produces a lightweight backpack popular with college students. Standard variable costs relating to...

Accounting
Q

Budgeted sales (in units)500 Selling price per unit $ 2,000 Cost...

Accounting
Q

The board of commissioners of the City of Hartmoore adopted a General Fund budget for...

Accounting
Q

please help show step by step :) Use the following information...

Accounting