Question
A trader BUYS TWO July corn futures contracts at $5 per bushel. (Each Contract equals 5000 Bushels). Assume the margin requirement is $4000 per contract
A trader BUYS TWO July corn futures contracts at $5 per bushel. (Each Contract equals 5000 Bushels). Assume the margin requirement is $4000 per contract and the account has $12000 in it. What is the minimum price per bushel change (indicate $/bu. change and + or -) that would make the MTM account value equal to zero or in other words would create a margin call?
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Financial Management For Public Health And Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
7th Edition
1071835335, 978-1071835333
