Question
On Aug. 11, 2020, Joe purchased 3 futures contracts for corn at 378'2. The initial margin requirement is 10%. Over the next five days, the
On Aug. 11, 2020, Joe purchased 3 futures contracts for corn at 378'2. The initial margin requirement is 10%. Over the next five days, the price of corn futures changed as follows:
| Day | Price |
| 1 | 377'4 |
| 2 | 372'0 |
| 3 | 368'4 |
| 4 | 360'2 |
| 5 | 365'4 |
- Calculate the amount of money in Joes account at the end of each day.
- If the maintenance margin amount is $5,000 will a margin call occur?
- If so, on what day?
- If so, how much will Joe be required to deposit into his margin account?
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Horngrens Cost Accounting A Managerial Emphasis
Authors: Srikant M. Datar, Madhav V. Rajan
16th edition
134475585, 978-0134475998, 134475992, 978-0134475585
