Business, 03.07.2020 19:01 Annapetrik

The futures price of gold is $1,250. Furutes contracts are for 100 ounces of gold and the requirement is $5,000 per contact. The maintenacnce margin requirement is $1,500. You expect the price of gold to rise and enter into a contract to buy gold. Required:

a. How much must you initially remit?
b. If the futures price of gold rises to $1,255, what is the profit and percentage return on your position?
c. If the futures price of gold declines to $1,248, what is the loss and percentage return on the position?
d. If the futures price falls to $1,238, what must you do?
e. If the futures price continues to decline to $1,210, how much do you have in your account?
f. How do you close your position?

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The futures price of gold is $1,250. Furutes contracts are for 100 ounces of gold and the requiremen...