You are long 20 gold futures contracts, established at an initial settle price of $1,512 per...
You are long 20 gold futures contracts, established at an initial settle price of $1,512 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,506, $1,502, $1,507, and $1,517, respectively.
Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or loss at the end of the trading period. Assume that a margin call requires you to fund your account back to the initial margin requirement.
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You are long 20 gold futures contracts, established at an
initial settle price of $1,512 per...
You are long 28 gold futures contracts, established at an initial settle price of $1,536 per...
You are long 28 gold futures contracts, established at an initial settle price of $1,536 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,525, $1,521, $1,531, and $1,541, respectively Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit...
You are long 19 gold futures contracts, established at an initial settle price of $849 per...
You are long 19 gold futures contracts, established at an initial settle price of $849 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract, and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $838, $834, $844, and $854, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit...
Problem 14-12 Marking-to-Market (LO2, CFA2) You are long 24 gold futures contracts, established a...
Problem 14-12 Marking-to-Market (LO2, CFA2) You are long 24 gold futures contracts, established at an initial settle price of $1,524 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,518, $1,514, $1,519, and $1,529, respectively. Compute the balance in your margin account at the end of each of the four trading days,...
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You are short 21 gasoline futures contracts, established at an initial settle price of $2.295 per gallon, where each contract represents 42,000 gallons. Your initial margin to establish the position is $10,375 per contract, and the maintenance margin is $9,475 per contract. Over the subsequent four trading days, gasoline settles at $2.281, $2.309, $2.328, and $2.356, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or...
You are short 15 gasoline futures contracts, established at an initial settle price of $2.085 per...
You are short 15 gasoline futures contracts, established at an initial settle price of $2.085 per gallon, where each contract represents 42,000 gallons. Your initial margin to establish the position is $7,425 per contract and the maintenance margin is $6,500 per contract. Over the subsequent four trading days, gasoline settles at $2.071, $2.099, $2.118, and $2.146, respectively Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or...
Suppose that you bought two one-year gold futures contracts when the one-year futures price of gold...
Suppose that you bought two one-year gold futures contracts when the one-year futures price of gold was US$1,340.30 per troy ounce. You then closed the position at the end of the sixth trading day. The initial margin requirement is US$5,940 per contract, and the maintenance margin requirement is US$5,400 per contract. One contract is for 100 troy ounces of gold. The daily prices on the intervening trading days are shown in the following table. Day Settlement Price 0 1340.30 1...
You are short 15 gasoline futures contracts, established at an initial settle price of $2.66 per...
You are short 15 gasoline futures contracts, established at an initial settle price of $2.66 per gallon, where each contract represents 42,000 gallons. Over the subsequent four trading days, gasoline settles at $2.63, $2.68, $2.71, and $2.76, respectively. Calculate the profit or loss for each trading day. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) Profit/Loss Day 1 $ Day 2 $ Day 3 $ Day 4 $ Compute your...
On 1.11.2019 you enter into a long futures contract for 100 ounces of gold at $1,500...
On 1.11.2019 you enter into a long futures contract for 100 ounces of gold at $1,500 an ounce. Your initial margin is set at 15% of the contract value. The settlement prices for gold on the subsequent two days are: $1550 on 2.11.2019 and $1,470 on 3.11.2019. Show the “marking-to-market” and the adjustment in the margin account at the end of each of the two trading days. What is the total 2-day gain or loss on the position?
] Question 4 (10 marks) Suppose the spot price of gold is $1,500 per troy ounce...
]
Question 4 (10 marks) Suppose the spot price of gold is $1,500 per troy ounce today. The futures price of gold for delivery in 1 year is $1,530 per troy ounce. Assume that the one-year gold futures contract is correctly priced and there are no storage and insurance costs. Also assume that the risk-free rate is compounded annually and you can borrow and lend money at the risk-free rate. a). What is the theoretical parity price of a two-year...
You are long 28 gold futures contracts, established at an initial settle price of $1,536 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,525, $1,521, $1,531, and $1,541, respectively Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit...
You are long 19 gold futures contracts, established at an initial settle price of $849 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract, and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $838, $834, $844, and $854, respectively. Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit...
Problem 14-12 Marking-to-Market (LO2, CFA2) You are long 24 gold futures contracts, established at an initial settle price of $1,524 per ounce, where each contract represents 100 troy ounces. Your initial margin to establish the position is $12,000 per contract and the maintenance margin is $11,200 per contract. Over the subsequent four trading days, gold settles at $1,518, $1,514, $1,519, and $1,529, respectively. Compute the balance in your margin account at the end of each of the four trading days,...
You are short 15 gasoline futures contracts, established at an initial settle price of $2.085 per gallon, where each contract represents 42,000 gallons. Your initial margin to establish the position is $7,425 per contract and the maintenance margin is $6,500 per contract. Over the subsequent four trading days, gasoline settles at $2.071, $2.099, $2.118, and $2.146, respectively Compute the balance in your margin account at the end of each of the four trading days, and compute your total profit or...
]
Question 4 (10 marks) Suppose the spot price of gold is $1,500 per troy ounce today. The futures price of gold for delivery in 1 year is $1,530 per troy ounce. Assume that the one-year gold futures contract is correctly priced and there are no storage and insurance costs. Also assume that the risk-free rate is compounded annually and you can borrow and lend money at the risk-free rate. a). What is the theoretical parity price of a two-year...
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