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5. An Australian company sells yen futures contracts to cover possible exchange losses on its export orders denominated in Japanese yen. The amount of the
5. An Australian company sells yen futures contracts to cover possible exchange losses on its export orders denominated in Japanese yen. The amount of the initial margin is AUS\$50,000, and the maintenance margin is 75% of the initial margin. The value of the company's position declines by AUS $15,000 because the spot rate for yen has increased. a) Calculate the maintenance margin? b) Should the broker issue margin calls to the company? And by how much
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