Gold futures price per ounce


Problem:

A company enters into a long futures contract to buy 200 ounces of gold for $1,257 per ounce. The initial margin is $4,000 and the maintenance margin is $1,000.

Task:

Question: What gold futures price per ounce will trigger a margin call? Explain in detail and please provide all workings.

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Finance Basics: Gold futures price per ounce
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