Question
A trader buys one July futures contract on frozen orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is
A trader buys one July futures contract on frozen orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 120 cents per pound, the initial margin is $6,000 per contract, and the maintenance margin is $4,500 per contract. What price change (cents per pound) would lead to a margin call?
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International Trade Finance
Authors: Tarsem Bhogal, Arun Trivedi
2nd Edition
303024542X, 9783030245429
