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Suppose you enter into a futures contract to buy 10,000 bushels of corn at 10 cents per bushel a month from now. The exchange requires
Suppose you enter into a futures contract to buy 10,000 bushels of corn at 10 cents per bushel a month from now. The exchange requires you to put in a margin of $2,000. The price of corn falls to 8 cents per bushel that same day. How much will you have left in your margin account at the beginning of the following day?
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