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Question 2 [8] Suppose you take a short position in a three-month futures contract on 2 500 kilograms of Fine Wool at a futures

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Question 2 [8] Suppose you take a short position in a three-month futures contract on 2 500 kilograms of Fine Wool at a futures price of 1 010 cents per kilogram. You are required to deposit R19 000 into a margin account and you are informed that the maintenance margin is R15 000. 2.1 2.2 2.3 Calculate the spot price of Fine Wool that will trigger a margin call. Calculate the spot price of Fine Wool that will allow R3 000 to be withdrawn from the margin account. What would happen if a margin call was not met?

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