What is the final balance in his margin account

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Reference no: EM131059632

An investor enters into a short futures position in 10 contracts in gold at a futures price of $276.50 per oz. The size of one futures contract is 100 oz. The initial margin per contract is $1,500 and the maintenance margin is $1,100 per contract.

Suppose the futures settlement price on the first day is $278.00 per oz. The futures settlement price on the second day is $281.00 per oz. On the third day, the investor closes out the short position at a futures price of $276.00.

What is the final balance in his margin account?

Reference no: EM131059632

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