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What is your percentage loss

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Question - The future price of Gold for August 2022 delivery is $1,780. Future contracts are for 100 ounce of gold and assume that the margin requirement is $4,000 per contract and the maintenance margin requirement is 2,000. You expect the price of gold to rise, and you buy one August Gold contract at a price of $1,780.

How much you need to have in your account to buy one future contract?

Assume you buy one August gold contract at $1,780, and gold price goes up and you sell your August future contract at a price of $1,990. Estimate your Dollar return and percentage return.

If gold price goes down and you sell your future contract at $1650, what is your percentage loss?

Reference no: EM133118188

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