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When trading corn, an initial maintenance requirement of $ 4 , 0 0 0 exists on a contract to 1 0 0 , 0 0
When trading corn, an initial maintenance requirement of $ exists on a contract to bushels of corn at $ per bushel. There is a maintenance margin of $ If the price of corn increases, how does the use of margin affect return?
a Return is dampened in a positive direction.
b Return is dampened in a negative direction.
c Return is amplified in a negative direction.
d Return is amplified in a positive direction.
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