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Jane is looking at a long position in three wheat contracts of 5,000 bushels. Each contract is worth $2.00 per bushel today. Each contract requires

Jane is looking at a long position in three wheat contracts of 5,000 bushels. Each contract is worth $2.00 per bushel today. Each contract requires an initial margin of $150 and a maintenance margin of $100. Compute the initial margin for a three-contract trade and the maintenance margin for the same three-contract trade.

*Apply initial and maintenance margin formula and concept respectively

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