Suppose that on October 24 you buy 7 March gold futures cont…

Suppose that on October 24 you buy 7 March gold futures contracts for $325 per ounce.At 11:00 am on October 25 you buy 4 more contracts for $330.5 ounce. At the close oftrading on October 25, gold futures settle for $338.0 ounce. If the contract size is 100ounces and the initial margin equals 3250, how much do you gain or lose as of the close?

Modern Portfolio Managers (MPM) hold a 8.0 million dollar po…

Modern Portfolio Managers (MPM) hold a 8.0 million dollar portfolio of stocks with abeta of 0.65 measured with respect to the S&P 500 index. The current value of a futurescontract on the index is 1045. 2. The multiplier on the futures equals $250. If MPM wishesto increase its systematic risk in its portfolio to . 85, how many contracts must it buy orsell?