Question
A company enters a short futures contract to sell 5000 bushels of wheat for 250 cents per bushel. The initial margin is $3000, and the
A company enters a short futures contract to sell 5000 bushels of wheat for 250 cents per bushel. The initial margin is $3000, and the maintenance margin is $2000.
(a) What price change would lead to a margin call?
(b) How much money should the company deposit in the margin account on the day it receives the margin call in part (a)?
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Python For Finance
Authors: Yves Hilpisch
2nd Edition
1492024333, 978-1492024330
