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Amount of the variation margin

An investor enters into a short position in a gold futures contract at USD 294.20. Each futures contract controls 100 troy ounces. The initial margin is USD 3,200, and the maintenance margin is USD 2,900. At the end of the first day, the futures price drops to USD 286.6. Which of the following is the amount of the variation margin at the end of the first day?

A. 0

B. USD 34

C. USD 334

D. USD 760

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Amount of the variation margin

Reference No:- TGS0673622

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Amount of the variation margin

Reference No:- TGS0673622

Recent Questions Asked Finance Basics

Q : What is the cost per unit and the price

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