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Initial Futures Contract price = 15.29 cent per lb Contract size = 60000 lbs Initial Margin requirement = 10 % Maintenance margin = 600 Assume

Initial Futures Contract price = 15.29 cent per lb

Contract size = 60000 lbs

Initial Margin requirement = 10 %

Maintenance margin = 600

Assume the volatility of Soybean Oil immediately increases 20%. How will it impact Futures price? How will it impact investor's margin account requirement? Explain your answer.

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