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What is the rate of return in account

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Suppose you enter into a short position in 6-month futures contract on 100 ounces of gold at a futures price of $1,854 per ounce. The initial required margin is $5,000. Two months after establishing the position, you notice that the futures price at the end of the trading day is now $1,835 per ounce. What is the rate of return in your account considering the initial deposit of $5,000 that you made? (Note: You are asked for a rate of return, not a dollar amount.) Express the rate of return in decimal format, rounded accurately to 4 decimal places (e.g., 10.67% should be expressed as 0.1067 and nothing else).

Reference no: EM133073502

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