Problema company enters into a long futures contract to buy, Ask an Expert

Finance

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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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91146319

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