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4.4 A company enters into a long futures contract to buy 40,000 pounds of cotton for 64 cents per pound. The initial margin is $4000

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4.4 A company enters into a long futures contract to buy 40,000 pounds of cotton for 64 cents per pound. The initial margin is $4000 and the maintenance margin is $3000. A margin call will occur when the price of cotton per pound is below 66.5 cents O above 66.5 cents below 61.5 cents O above 61.5 cents None of the above

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