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A company enters into a short future contract to sell 10,000 bushels of wheat for 550 cents per bushel. The initial margin is $5,000 and
A company enters into a short future contract to sell 10,000 bushels of wheat for 550 cents per bushel. The initial margin is $5,000 and the maintenance margin is $3,000. What price change would lead to a margin call? Under what circumstances could $1000 be withdrawn from the margin account? Please show work. Thank you
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