Question
In: Advanced Math
You took a short futures position in 10 contracts, covering each 100 ounces of gold at...
You took a short futures position in 10 contracts, covering each 100 ounces of gold at a price of $276.5 per ounce. The initial and the maintenance margin requirement are respectively $1500 and is $1100 per contract. No withdrawal in any excess margin will be made. Ignore any interest on the balance.
The settlement prices per ounce of gold at the end of days 1, 2 and 3 are respectively $278, $281 and $276.
(c) Calculate your total gain or loss at the end of day 3, and the annualized return. [5]
Solutions
Expert Solution
total gain at day 3 is $500
for any doubt comment
Colby Messinger answered 2 years agoRelated Solutions
You took a short futures position in 10 contracts, covering each 100 ounces of gold at...
You took a short futures position in 10 contracts, covering each
100 ounces of gold at a price of $276.5 per ounce. The initial and
the maintenance margin requirement are respectively $1500 and is
$1100 per contract. No withdrawal in any excess margin will be
made. Ignore any interest on the balance.
(b) The settlement prices per ounce of gold at the end of days
1, 2 and 3 are respectively $278, $281 and $276. Complete the table
below assuming...
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You enter into a short position in one gold futures contract worth $500 per ounce. Contract...
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