Question
A trader buys two July futures contracts on orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 170
A trader buys two July futures contracts on orange juice. Each contract is for the delivery of 15,000 pounds. The current futures price is 170 cents per pound, the initial margin is $6500 per contract, and the maintenance margin is $5000 per contract.
- a)What price change would lead to a margin call?
- b)Under what circumstances could $2000 be withdrawn from the margin account?
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CFIN
Authors: Scott Besley, Eugene Brigham
5th edition
1305661656, 9781305888036 , 978-1305666870
