Futures price of gold is $ 1,750. Futures contracts are for 100 ounces of gold, and margin need is $ 5,000 a contract. Maintenance margin need is $ 1,500. You expect price of gold to increase and enter into contract to purchase gold.
i) How much should you oiginally remit?
ii) If futures price of gold rises to $ 1,755, determine profit and percentage return on the position? 10% gain
iii) If futures price of gold declines to $ 1,748, find loss and percentage re-turn on position? 4% loss
iv) If futures price falls to $ 1,738, what should you do?
v) If futures price continues to decline to $ 1,710, how much do you have in the account?
vi) How do you close the position?