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1. A trader who has a position in gold futures wants the price of gold to in the future. A. long; decrease B. short; decrease C. short; stay the same D. short; increase 2. A company enters into two long positions in a futures contract of a commodity for $60 per unit. The contract size is 1,000. The initial margin is $6,000 and the maintenance margin is $4,000. What futures price will allow $2,000 to be withdrawn from the margin account? A. $58 В. $62 C. $61 D. $59

1. A trader who has a position in gold futures wants the price of gold to in the future. A. long; decrease B. short; decrease C. short; stay the same D. short; increase 2. A company enters into two long positions in a futures contract of a commodity for $60 per unit. The contract size is 1,000. The initial margin is $6,000 and the maintenance margin is $4,000. What futures price will allow $2,000 to be withdrawn from the margin account? A. $58 В. $62 C. $61 D. $59

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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position in gold futures wants the price of gold to 1. A trader who has a in the future. A. long; decrease B. short; decrease C. short; stay the same D. short; increase 2. A company enters into two long positions in a futures contract of a commodity for $60 per unit. The contract size is 1,000. The initial margin is $6,000 and the maintenance margin is $4,000. What futures price will allow $2,000 to be withdrawn from the margin account? A. $58 B. $62 C. $61 D. $59
Transcribed Image Text:position in gold futures wants the price of gold to 1. A trader who has a in the future. A. long; decrease B. short; decrease C. short; stay the same D. short; increase 2. A company enters into two long positions in a futures contract of a commodity for $60 per unit. The contract size is 1,000. The initial margin is $6,000 and the maintenance margin is $4,000. What futures price will allow $2,000 to be withdrawn from the margin account? A. $58 B. $62 C. $61 D. $59
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