The Futures Price of Gold Is $250

question 8

Essay

The futures price of gold is $250.Futures contracts are for 100 ounces of gold,and the margin requirement is $3,000 a contract.The maintenance market requirement is $1,500.A speculator expects the price of gold to rise and enters into a contract to buy gold.
a.How much must the speculator initially remit?
b.If the futures price of gold rises to $255,what is the profit and return on the position?
c.If the futures price of gold declines to $2.48,what is the loss on the position?
d.If the futures price declines to $2.34,what must the speculator do?
e.If the futures price continues to decline to $2.32,how much does the speculator have in the account?

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Definitions:

Human Behavior

The range of actions and mannerisms made by individuals and influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and genetics.

Situational Forces

External circumstances or environments that influence individuals' behavior and decisions.

Self-actualization

The realization or fulfillment of one's talents, potential, and capabilities, considered as the ultimate goal of personal development.

Hierarchy

A structure or entity where participants or factions are arranged in sequential order of superiority or command.