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Microsoft Word - FINA471ProblemSet1 A company enters into a short futures contract to sell 50,000 units of a commodity for 70 cents per unit. The

Microsoft Word - FINA471ProblemSet1

A company enters into a short futures contract to sell 50,000 units of a commodity for 70 cents per unit. The initial margin is $4,000 and the maintenance margin is $3,000. What is the futures price per unit above which there will be a margin call?

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