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Financial Risk Manager Part 1

Financial Risk Manager Part 1

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Assume you enter into 5 long futures contracts to buy July gold for 1,400perounce.Agoldfuturescontractsizeis100troyounces.Theinitialmarginis1,400 per ounce. A gold futures contract size is 100 troy ounces. The initial margin is 1,400perounce.Agoldfuturescontractsizeis100troyounces.Theinitialmarginis14,000 per contract and the maintenance margin is 75% of the initial margin. What change in the futures price of gold will lead to a margin call?

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