Question
Coffee Bean Short 12 June Black coffee two months ago at $80 per pound. Each contract size has 5 boxes, comprising 20 pounds of
Coffee Bean Short 12 June Black coffee two months ago at $80 per pound. Each contract size has 5 boxes, comprising 20 pounds of black coffee. The investor must set aside an initial margin of 6% based on the total contract value and sustain 80% of the initial margin throughout the contract's duration. Compute at what price Coffee Bean will be triggered by a margin call.
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