Will Purchased 3 Futures Contracts on Corn

question 60

Multiple Choice

Will purchased 3 futures contracts on corn. The contract size is 5,000 bushels and the price is quoted in cents per bushel. Assume the initial margin requirement is 4.5% of the contract value. What is the amount of the initial margin if the futures quote is 624?

• A)$140.40
• B)$421.20
• C)$1,404
• D)$2,808
• E)$4,212

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