An Investor Controls Contracts on Five 5,000 Bushel Futures Contracts

question 38

Short Answer

An investor controls contracts on five 5,000 bushel futures contracts on grain, at a price of $3 per bushel. The margin requirement is 5%, and the maintenance margin is 80%. How much would the price per bushel have to change to provide a $750 profit?

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Definitions:

Factual Memory

The aspect of memory concerned with recalling objective information and experiences.

Semantic Memory

A type of long-term memory involving the conscious recall of facts and concepts not drawn from personal experience.

Episodic Memory

The type of long-term memory that involves the recollection of specific events, situations, and experiences, including their time and place.

Nondeclarative Memory

a type of long-term memory that unconsciously and effortlessly retrieves information, including procedural memory for skills and habits, emotional responses, and learned reflexes.