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A company enters into 40 short futures contracts to sell a commodity for 128 cents per unit. Each contract is on 4,000 units of the
A company enters into 40 short futures contracts to sell a commodity for 128 cents per unit. Each contract is on 4,000 units of the commodity The initial margin is $2,000 and the maintenance margin is $1,200.
What is the futures price per unit above which there will be a margin call? Note: the answer should be in cents.
If no additional money is put into or withdrawn from the margin account, what is the maximum price at which $71,000 will be withdrawn from the margin account? Note: the final answer should be in cents.
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