What price change would lead to a margin call

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You sell one December gold futures contracts when the futures price is $1,010 per ounce. Each contract is on 100 ounces of gold and the initial margin per contract that you provide is $2,000. The maintenance margin per contract is $1,500. During the next day the futures price rises to $1,012 per ounce. (a) What is the balance of your margin account at the end of the day? (b) What price change would lead to a margin call? Detail all the cash flows.

Reference no: EM132014454

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