1. An investor enters into a long futures position in 5 contracts in gold at a future price of $1,666.40 per oz. The size of one contract is 100 oz. The initial margin per contract is $9,500 and the maintenance margin per contract is $6,900. Assume the following evolution of gold prices over the next five days, and compute the margin account assuming that the investor meets all margin calls. What is the total loss or profit if the investor closes out the position on 03/09/2018?
Date Price
03/05/2018 $1,666.40
03/06/2018 $1,650.20
03/07/2018 $1,635.60
03/08/2018 $1,650.00
03/09/2018 $1,666.40
2. It is odd (but not uncommon) for
A) housing shortages to be reported and yet data show a surplus of dwellings
B) the natural vacancy rate to exceed 20%
C) the Census Bureau to forget to estimate new construction for two years going
D) for lenders to ignore housing data when underwriting construction loans
3. Which one of the following accounts is treated as a financing expense?
depreciation
dividends
interest paid
other costs