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You enter into a short futures contract to sell 50,000 units of a commodity for 60 cents per unit. The initial margin is $4,000 and
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You enter into a short futures contract to sell 50,000 units of a commodity for 60 cents per unit. The initial margin is $4,000 and the maintenance margin is $2,500. What is the price of the commodity that you will receive a margin call?
A. 57 cents
B. 68 cents
C. 72 cents
D. 63 cents
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