A Company Enters into a Long Futures Contract to Buy

question 10

Multiple Choice

A company enters into a long futures contract to buy 1,000 units of a commodity for $60 per unit.The initial margin is $6,000 and the maintenance margin is $4,000.What futures price will allow $2,000 to be withdrawn from the margin account?

• A) $58
• B) $62
• C) $64
• D) $66

---

Definitions:

Somatic Symptom Disorders

A group of disorders characterized by significant focus on physical symptoms, such as pain, that cause major emotional distress and problems functioning.

True Medical Problems

Health issues that are identifiable through medical assessment and are not psychosomatic in nature.

Somatic Symptom Disorder

A mental disorder characterized by an excessive focus on physical symptoms, causing significant distress and impairment.

Medicine Cabinet

A storage area, often found in bathrooms, for medications and first aid supplies.