The futures price of gold is $250.Futures contracts are for 100 ounces of gold,and the margin requirement is $3,000 a contract.The maintenance market requirement is $1,500.A speculator expects the price of gold to rise and enters into a contract to buy gold.
a.How much must the speculator initially remit?
b.If the futures price of gold rises to $255,what is the profit and return on the position?
c.If the futures price of gold declines to $2.48,what is the loss on the position?
d.If the futures price declines to $2.34,what must the speculator do?
e.If the futures price continues to decline to $2.32,how much does the speculator have in the account?

Question

Quizplus · Accepted Answer

The Answer of The futures price of gold is $250.Futures contracts are for 100 ounces of gold,and the margin requirement is $3,000 a contract.The maintenance market requirement is $1,500.A speculator expects the price of gold to rise and enters into a contract to buy gold.
a.How much must the speculator initially remit?
b.If the futures price of gold rises to $255,what is the profit and return on the position?
c.If the futures price of gold declines to $2.48,what is the loss on the position?
d.If the futures price declines to $2.34,what must the speculator do?
e.If the futures price continues to decline to $2.32,how much does the speculator have in the account?

The Futures Price of Gold Is $250