3. You take a long position in the Gold futures on 1/15 when the futures price is 1600/oz. Each contract is for a 100 oz. The initial margin is $10,000 and the maintenance margin is $6,000. Following your trade, the market moves in the following manner. Date 1/16 1/17 1/18 1/21 Settlement Price ($/oz) 1620 1580 1540 1490 1530 1/22 a. On what day(s) do you get a margin call and what are the amounts of the margin calls?

3. You take a long position in the Gold futures on 1/15 when the futures price is 1600/oz. Each contract is for a 100 oz. The initial margin is $10,000 and the maintenance margin is $6,000. Following your trade, the market moves in the following manner. Date 1/16 1/17 1/18 1/21 Settlement Price ($/oz) 1620 1580 1540 1490 1530 1/22 a. On what day(s) do you get a margin call and what are the amounts of the margin calls?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter5: Currency Derivatives

Section: Chapter Questions

Problem 3BIC

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