Question
A trader shorts 3 wheat futures contracts (5000 bushels per contract) at $4.50 per bushel. Each contract has an initial margin of $1500 and maintenance
A trader shorts 3 wheat futures contracts (5000 bushels per contract) at $4.50 per bushel. Each contract has an initial margin of $1500 and maintenance margin of $1000. What is the first price that would lead to a margin call?
| $4.61 per bushel | ||
| $ 4.11 per bushel
| ||
| $ 4.33 per bushel | ||
| $ 4.39 per bushel |
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Financial Management Theory And Practice
Authors: Eugene F Brigham, Michael C Ehrhardt
11th Edition
0324259689, 9780324259681
