Question
An investor enters into a short position in a gold futures contract. The contract price is Rs.1300 and the contract consists of 100 ounces of gold. The initial margin is Rs.3000 and maintenance margin is Rs.2250. If the price drops to Rs.1290 at the end of the first day and Rs.1280 at the end of the second day, how much variation margin needs to be brought in at the end of the second day by the investor?
More Basics of Derivatives Questions
- Which statement correctly distinguishes contango from backwardation?
- The loss incurred on an incomplete contract is transferred to …………….account.
- Which of the following is NOT an example of a forward contract?
- An investor expects a moderate rise in the price of Reliance Industries and buys a Call Option with a Strike Price of ₹2,800 at a Premium of ₹45. Simultane...
- Flexible Budget is a budget with which features?
- When did Financial Stability Board come into existence?
- How could the company, ABC Ltd, have made Ram stay in the company?
- What does the BRSR Core represent?
- A ___________ is an agreement between two parties to exchange cash flows on a determined date or in many cases multiple dates.
- An investor enters into a long position in one Nifty Future contract (Lot Size = 50) at a price of ₹24,000. The broker mandates an Initial Margin of 10% an...
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
Think You're Ready for RBI Grade B?
RBI Grade B 2026 Phase 1 Memory Based Paper
- 200 Questions with Detailed Solutions
- Section-wise Coverage (GA, English, Quant & Reasoning)