You Purchased Two Futures Contracts on Soybeans at a Price

question 14

Multiple Choice

You purchased two futures contracts on soybeans at a price quote of 1344′0. The initial margin requirement is $4,750 per contract and the maintenance margin is $3,500 per contract. The contract quantity is 5,000 bushels and the price quote is in cents per bushel. What is the lowest the price quote can go before you receive a margin call?

• A)1314′0
• B)1315′0
• C)1319′0
• D)1322′0
• E)1325′0

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Definitions:

Conceptualizing Disease

The process of forming a comprehensive understanding or model of illness, incorporating medical, social, and individual perspectives.

Howard Leventhal

An American psychologist known for his contributions to health psychology, particularly in the understanding of how people perceive and respond to health threats.

Conceptualization

The process of forming a concept or idea by combining various concepts and elements to define a new construct.

Monetary Cost

The financial expense associated with acquiring goods or services, or the loss of value in economic transactions.