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One futures contract on orange juice is equal to 15,000 lbs of juice. Recently, the contract was trading around 1.46/lb. The initial margin for an
One futures contract on orange juice is equal to 15,000 lbs of juice. Recently, the contract was trading around 1.46/lb. The initial margin for an orange juice contract is $1,320, and the maintenance margin is $800.
If an investor buys the contract at $1.46.lb, at what price would the investor get a margin call? Show work.
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