Futures price per ounce


Problem:

A company enters into a long futures contract to buy 200 ounces of gold for $1,278 per ounce. The initial margin is $4,000 and the maintenance margin is $1,000.

Required:

Question: What gold futures price per ounce will trigger a margin call?

Note: Please show how to work it out.

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Finance Basics: Futures price per ounce
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