Marking to market example 2 on june 5 an investor

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Marking to Market: Example 2 On June 5, an investor takes a long position in two December gold futures contracts: l contract size is 100 oz. l futures price is US$1300 per ounce l initial margin requirement is US$2,000/ contract (or US$4,000 in total) l maintenance margin is US$1,500/contract (or US$3,000 in total) Fin_330
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Marking to Market: Example 2 Daily Cumulative Margin Futures Gain Gain Account Margin Price (Loss) (Loss) Balance Call Day (US$) (US$) (US$) (US$) (US$) 1300.00 4,000 5-Jun 1297.00 (600) (600) 3,400 0 . . . . . . . . . . . . . . . . . . 13-Jun 1293.30 (420) (1,340) 2,660 1,340 . . . . . . . . . . . . . . . . . 19-Jun 1287.00 (1,140) (2,600) 2,740 1,260 . . . . . . . . . . . . . . . . . . 26-Jun 1292.30 260 (1,540) 5,060 0 + = 4,000 3,000 + = 4,000 < 55
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Examples of Futures Contracts l S&P 500 future http://www.cmegroup.com/trading/equity-index/us- index/sandp-500_quotes_globex.html l Specifications: l Underlying: S&P 500 index l Where traded: Chicago Mercantile Exchange l Month: March, June, September, December l Size: 250 x S&P 500 Index 56
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Examples of Futures Contracts l Gold Futures http://www.cmegroup.com/trading/metals/precious/ gold_quotes_globex.html l EUR/USD Futures http://www.cmegroup.com/trading/fx/g10/euro-fx.html l Crude Oil Futures http://www.cmegroup.com/trading/energy/crude-oil/light- sweet-crude.html 57
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