Question
Suppose you are short 21 futures contracts of Silver (contract size = 5000 oz.) The futures price is 21.05 per ounce. The initial margin is:$9,900
Suppose you are short 21 futures contracts of Silver (contract size = 5000 oz.) The futures price is 21.05 per ounce. The initial margin is:$9,900 per contract, the maintenance margin is $9,000 per contract.
a) At what price level would you receive a margin call?
b) Calculate the price level that would allow you to withdraw $20,000 from your margin account?
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Fundamentals of Investments, Valuation and Management
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
8th edition
1259720697, 1259720691, 1260109437, 9781260109436, 978-1259720697
