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A trader is ALFA on a futures contract on corn. The contract is for the delivery of 5000 bu. The current futures price is C
- A trader is ALFA on a futures contract on corn. The contract is for the delivery of 5000 bu. The current futures price is C cents/bu, the initial margin is $A per contract, and the maintenance margin is $B per contract.
- How should the price evolve to get a margin call? (1.5 p)
What price change would lead to a margin call? (2.5 p)
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Problems In Portfolio Theory And The Fundamentals Of Financial Decision Making
Authors: Leonard C Maclean, William T Ziemba
1st Edition
9814749931, 978-9814749930
