Question
Each futures contract is on 2,000 pounds of silver. The initial margin is $4,000 per contract and the maintenance margin is $3,000 per contract. a)
Each futures contract is on 2,000 pounds of silver. The initial margin is $4,000 per contract and the maintenance margin is $3,000 per contract.
a) After putting $4,000 in the margin account, a company enters into 1 long futures contract to buy silver at the futures price of $6.3 cents per pound At what price per pound would the company receive the margin call?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
15th edition
1337671002, 978-1337395250
