Consider a transaction today for five futures contracts for gold. Assume there are no storage costs. Also assume that th

[answerhappygod]

Consider a transaction today for five futures contracts for
gold. Assume there are no storage costs. Also assume that the
futures price is set at a level where there are no arbitrage
opportunities. The contract is entered into when the spot price of
gold is $1,590.00 per ounce, the continuously compounded rate of
interest is 6% and the contract has three months until maturity.
Each contract is on 100 ounces of gold and the initial margin per
contract is $2,000. The maintenance margin per contract is $1,600.
Assume that no money is withdrawn from either margin account during
the next six days. What is (i) the balance of the margin account
for the party with a short futures position if the futures price
after six days is $1,617.70 and (ii) the price below which a margin
call will be made for the party with a long position?