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A futures contract consisting of 7,500 pounds of a given commodity, with a minimum price change of $0.01, is purchased by an investor for $35.75
A futures contract consisting of 7,500 pounds of a given commodity, with a minimum price change of $0.01, is purchased by an investor for $35.75 per pound. If the initial margin is $3,525 and the maintenance margin is $1,225, at what price would there be a margin call? Explain your answer.
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