Question
A company enters into a short futures contract to sell 50,000 pounds of cotton for 70 cents per pound. The initial margin is $4,000 and
A company enters into a short futures contract to sell 50,000 pounds of cotton for 70 cents per pound. The initial margin is $4,000 and the maintenance margin is $3,000. At what settlement price will you start to have a margin call (i.e., the trigger price above/below which you will start to have a margin call)?
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Public Finance An International Perspective
Authors: Joshua E. Greene
1st Edition
9814365041, 978-9814365048
