Question
Sammy buys 3 March 2023 corn contracts when the quote is 672'6. His broker requires a 12% margin. He is trading on the CME futures
Sammy buys 3 March 2023 corn contracts when the quote is 672'6. His broker requires a 12% margin. He is trading on the CME futures exchange. One the first day after his purchase, the price of corn drops to 669'4. Will Sammy receive a margin call and if so how much, if anything needs to be added to his account? A. NO, he does not receive a margin call, nothing need be added to his account B. YES, he receives a margin call, and $2,000 must be added to his account C. YES, he receives a margin call, and $2,500 must be added to his account D. YES, he receives a margin call, and $5,000 must be added to his account
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