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One futures corn contract commits the buyer to purchase 5000 bushels of corn. Suppose that you purchase a May Corn contract at $670/bushel two days
One futures corn contract commits the buyer to purchase 5000 bushels of corn. Suppose that you purchase a May Corn contract at $670/bushel two days ago on November 14 and plan to close the position 10 days later. The initial margin required by your brokerage firm is 10%. The settlement price for the last two days are:
November 14: $675
November 15: $676
What will be the ending balance of your account on November 15?
One futures corn contract commits the buyer to purchase 5000 bushels of corn. Suppose that you purchase a May Corn contract at $670/bushel two days ago on November 14 and plan to close the position 10 days later. The initial margin required by your brokerage firm is 10%. The settlement price for the last two days are:
November 14: $675
November 15: $676
What will be the ending balance of your account on November 15?
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