A company enters into a short futures position in 10 contracts of gold at a futures price of $ 276.50 per ounce. Each contract is for 100 ounces. Spot price at the time of contract is 270.25. The…

A company enters into a short futures position in 10 contracts of gold at a futures price of $ 276.50 per ounce. Each contract is for 100 ounces. Spot price at the time of contract is 270.25. The initial margin per contract is $2,500. And maintenance margin is 2,000. Settlement price on the first day is $ 278.00 per ounce, second day is $ 281.00 per ounce, third day is $276.00, fourth day is $280.00, and fifth day is $275.00.

Required: a. Calculate the daily gain or loss. b. Calculate the cumulative gain or loss. c. Calculate the margin account balance. d. Calculate the margin call. e. If investor does not deposit margin call, what will happen?