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Suppose that you enter into a long futures contract to buy December corn for $3.85 per bushel. The size of the contract is 5,000 bushels.
Suppose that you enter into a long futures contract to buy December corn for $3.85 per bushel. The size of the contract is 5,000 bushels. The initial margin is $1,100 and the maintenance margin is $1,000. What change in the futures price will lead to a margin call? o Increases by $0.02 per bushel You will receive a margin call regardless of the change in futures price. o Need more information. o Decreases by $0.02 per bushel
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