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A. What is the difference between initial margin and maintenance margin on a futures contract? B. One futures contract on orange juice is equal to
A. What is the difference between initial margin and maintenance margin on a futures contract? B. One futures contract on orange juice is equal to 15,000 lbs. of juice. Assume that the contract is trading at around $ 1.46/lb. If the initial margin for an orange juice contract is $1,320, approximately what is the leverage an investor enjoys by trading this commodity?
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