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A trader buys five July futures contracts on frozen orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is
A trader buys five July futures contracts on frozen orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 150 cents per pound, the initial margin is $6,000 per contract, and the maintenance margin is $4,500 per contract. What price change would lead to a margin call?
above 140 cents | ||
above 160 cents | ||
below 160 cents | ||
below 140 cents |
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