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A trader enters into 2 short futures contracts for 5,000 bushels of wheat per contract with futures price being $2.50/bushel. The initial margin per contract
A trader enters into 2 short futures contracts for 5,000 bushels of wheat per contract with futures price being $2.50/bushel. The initial margin per contract is equal to $2,500 and the maintenance margin per contract is equal to $1,500. The trader has $5,000 in his margin account just before the next settlement. How much can the futures price rise before this trader gets a margin call?
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