Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A farmer enters into a short futures contract on 5,000 bushels of corn for 325 cents per bushel. What will be the farmers margin account
A farmer enters into a short futures contract on 5,000 bushels of corn for 325 cents per bushel. What will be the farmers margin account balance if the price goes to 333 cents per bushel? The initial margin is $2,000 and the maintenance margin is $1,500.
A. 2,600
B. 1,600
C. 2,400
D. 1,800
E. 2,200
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started