**ACCOUNTING**

The futures price of gold is $1,050. Futures contracts are for 100 ounces of gold, and the margin requirement is $5,000 a contract. The maintenance margin requirement is $1,500. You expect the price of gold to rise and enter into a contract to buy gold.

a. How much must you initially remit?

b. If the futures price of gold rises to $1,055, what is the profit and percentage return on your investment?

c. If the futures price of gold declines to $1,048 what is the loss and percentage return on the position?

d. If the futures price falls to $1,038, what must you do?

e. If the futures price continues to decline to $1,010, how much do you have in your account?

f. How do you close your position?

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