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You speculate that the will appreciate in the next 3 weeks. As a result, you buy a futures contract of 62,500 at $0.98. The bank
You speculate that the will appreciate in the next 3 weeks. As a result, you buy a futures contract of 62,500 at $0.98. The bank requires you to put an initial deposit of $5,625 which 10% of the contract size. You will get a margin call when your balance is below $2,000. At what settlement price will you get a margin call from the bank? A) $1.4640/ B) $1.1876/ C) $0.8420/ D) $0.6831/
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