Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A customer is long three soybean futures contracts at 4 2 5 1 / 4 cents per bushel. Initial margin is $ . 1 2

A customer is long three soybean futures contracts at 4251/4 cents per bushel. Initial margin is $.12 per bushel, and maintenance margin is $.10 per bushel. (The contract's minimum tick is 1/4 cent.) At what trade price will the customer receive a margin call?
415 cents/bushel
423 cents/bushel
4231/4 cents/bushel
4351/2 cents/bushel

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Digital Finance Big Data Start-ups And The Future Of Financial Services

Authors: Perry Beaumont

1st Edition

0367146797, 978-0367146795

More Books

Students also viewed these Finance questions

Question

Are you on information overload? Why? Why not? P-6587

Answered: 1 week ago

Question

3 When is it a good idea to use the internal supply of labour?

Answered: 1 week ago

Question

5 What are the main aims of talent management?

Answered: 1 week ago