Suppose you are short 21 futures contracts of Silver (contract size = 5000 oz.) The futures price

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Suppose you are short 21 futures contracts of Silver (contract size = 5000 oz.) The futures price is 21.05 per ounce. The initial margin is:$9,900 per contract, the maintenance margin is $9,000 per contract.

a) At what price level would you receive a margin call?

b) Calculate the price level that would allow you to withdraw $20,000 from your margin account?

Related Book For answer-question

Fundamentals of Investments, Valuation and Management

ISBN: 978-1259720697

8th edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Posted Date: May 11, 2024 10:28 AM

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Suppose you are short 21 futures contracts of Silver (contract size = 5000 oz.) The futures price

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Fundamentals of Investments, Valuation and Management

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